As a small business owner, you might handle almost all your company’s responsibilities. But, there may be times when you could use an extra hand. Do you ever need help with your accounting, taxes, or financial planning? If you do, you could hire an accountant.
You might not need to hire a full-time accountant, especially if you use online accounting software. Instead, you could use an accountant’s services periodically or per project. For certain financial tasks, an accountant can offer their experience, knowledge, and advice.
Signs you need to hire an accountant
You’re a business owner, not an accountant. Sometimes, it’s a good idea to get expert advice from a financial professional. Look out for these five signs that you need to hire an accountant.
1. You’re starting a business
When you open a business, you have to make a lot of decisions. The choices you make at this stage shape the future of your company. Hiring an accountant for their expert advice could help you see your best financial options.
For example, an accountant can help you chose a basic business structure. The way you structure your company will determine how you file and deposit taxes. An accountant can also make sure you follow government regulations for your structure.
2. Your business is growing
Whether sales explode overnight or steadily rise, an accountant can help as you grow. A bigger business means more profits — and more spending. An accountant has the expertise to project how successful your investments will be so you can confidently spend your revenue.
An accountant can also caution you about harmful business purchases. Learn how to find an accountant that can manage your small business growth. Accountants play a leading role in year-end tax planning for small business owners, and can help you prevent over-spending or under-spending. Their reports could prevent you from making a regrettable investment.
3. You need a formal business plan
One main benefit of a business plan is it can help you gain funding for your small business from banks and investors.
Your business plan will include financial reports and projections. An accountant can help you create, understand, and present your business’s financial figures.
4. You don’t understand taxes
You could lose money by making a mistake on your taxes. IRS penalties are costly, especially for a small business. And, you could overlook small business tax deductions that increase your refund. If you don’t know where to start with your tax return, an accountant can help you make sense of it.
An accountant can help you estimate your taxes. They can also file and deposit taxes for you. You run less risk of paying the government too much or too little.
5. You get audited
If your company gets audited, all your financial history is exposed. When IRS audit red flags arise from bookkeeping mistakes, you could be in trouble. An accountant can review your records and make sure they are accurate. They can reconcile accounts, check for missing information, and run reports so that you have a small chance of tripping IRS audit triggers.
Accounting software is a great tool for managing your books and working with an accountant. Our online accounting software uses an easy cash in, cash out system. We also offer free setup and support. Try it for free today!