Where To Start with Accountants and More
When You Need to Hire an Accountant
If you’re a small business owner managing your money yourself, you may be doing pretty successfully – as of now. After all, there are many tools online that you can use without any significant financial knowledge or experience. But as your business grows, managing your financials, including all legal and compliance issues that come with it, may become more complicated than you can handle. Surely, a professional will be able to help.
The following are specific scenarios that make it necessary to hire an accountant:
You have no knowledge about accounting.
If financial statements, accounting terms and the U.S. Tax Code confuse you or if you can hardly create reports, you definitely need an account – at least at the start – so you can be oriented on all of these things.
Bookkeeping takes up your time.
Maybe you do have some knowledge of accounting, but it seems like your bookkeeping tasks are preventing you from managing your business effectively. Hire an accountant so you can concentrate on what you do best, which is your business.
Your have investors expecting professional reports.
An accountant will be able to create high-detail, accurate reports that satisfy your investors and let you concentrate on running your business.
Your business is growing rapidly.
It’s good that your business is booming, but note that this is accompanied by more customers, more employees, more vendors, etc. Add to that more paperwork and number crunching, which means it’s plain illogical to think that you can still do everything effectively on your own.
Only your revenue is rising, not your profit.
If you’ve been selling a lot but your profits don’t seem to be moving a lot, you can hire an accountant to point out overhead expenses that you can reasonably cut down on, or recommend other adjustments with the goal of increasing your profit margins.
You’re branching out in another state.
If you’re planning to expand your business into another state, an accountant can help keep you compliant with regional tax reporting requirements.
You plan to buy or sell property, or sell your business.
Whether you want to grow via an acquisition or sell your business in part or in whole, an accountant can help you determine how to best structure the transaction so that your taxes are be kept to a minimum.
You’re facing an IRS audit.
Should you find yourself in the messy process of an audit, an accountant can take over and represent you before the IRS.
If you’ve come to the decision that you need an accountant, your next step is to choose the right one. Not all accountants are created equal, and just like physicians and lawyers, they have specialties as well. A bit of research can make a big difference.