How to Know if You Need an Accountant for Your Business?
If you are unfamiliar with debits, credits, and tracking transactions, managing your company’s finances might be challenging. But who says you have to do it alone? An accountant can provide you with the knowledge and direction you need to manage your finances properly. Although it is not required, having an accountant on hand may be quite beneficial when evaluating financial records and paying taxes. A skilled business accountant can provide your business guidance that might be the difference between success and failure, and their knowledge can assist you to make decisions as your company expands.
When you are trying to run a tight budget for a small business, it can be very difficult to determine whether you need to hire an extra worker or you can do the work yourself. This is why we have made this article, so we could help you decide whether you need the help of an accountant for your business. So, let’s get right into it.
Can You Manage Accounting and Everything Else at the Same Time?
Running a business (properly) is a completely different experience than your regular 8-hour job. There is no shift end when you are in charge of everything. So, you will need to commit a lot more time to make your business work out. This means that there simply won’t be time for everything. Time is of the essence for any thriving business and aspiring entrepreneur. Even for small businesses, it can be exceedingly difficult to find time to manage the business and always stay on top of your finances for accurate taxes, financial planning, and credit applications. If you simply can’t find enough time to run accurate accounts of all of these things, you should seek out professional assistance.
Did You Make Accounting Errors in the Past?
Mistakes happen in every business. This is a fundamental truth that you have to accept. The sooner you accept it, the sooner you can get over it and learn from your mistakes. However, if these mistakes keep reoccurring, you need to ask yourself whether you are capable of doing the job in question. Accounting is not an easy task (it wouldn’t be a sought profession if it were). It takes possibly seven years for a person to be a properly charted accountant. The time required to specialize tells you enough about the requirements for being an accountant at a professional level. It takes guts to admit that you aren’t cut out for a line of work and that you need assistance.
If you opt for professional assistance, you will be a lot safer and more efficient with funds in the long run than you would be if you were to do it yourself and constantly make small mistakes. Plus, if you’ve made bookkeeping errors in the past, you are very well aware of how tedious it is to rectify these mistakes. If you are struggling in keeping track of these accounts, then it’s time to get assistance.
There’s an Audit Coming Up
Hope you’re getting enough sleep because once audit season hits, you won’t be getting much of it. When you need to make an audit, your accounts and records need to be perfect. If issues rise, you are in a world of pain, as you will need to go through endless paperwork to justify the mistake that you’ve made. This can often make you lose much more time and money paying off fines than you would lose by hiring a professional to do the job for you. It comes down to how confident you are in managing your finances. If you are a sloppy organizer, you should definitely consider an accountant.
Are You Comfortable With the Newest Tech?
If you are a software nerd, this becomes a lesser dilemma. One of the biggest setbacks you can have for accounting is being inexperienced in the software technology used for accounting. Some of the most notable programs include:
- Intuit QuickBooks Online
- Zoho Books
- Plooto, and many more
You don’t need to be an expert to use these programs, but it definitely helps in making your finance reports become more efficient. This is why, if you don’t feel particularly confident using any of these programs, you should opt for getting professional assistance. If you want to take out the time to learn these programs, you need to ask yourself a simple question “Could my time be better spent learning something else?” If the answer is yes, then we believe that you know what to do. It is always commendable to learn a new skill, especially when it comes to business. But sometimes, it is a better investment of your time to upgrade yourself in different categories and leave some jobs to experts. For example, Sydney is known for having high-quality tax accountants that are well-versed in the newest software programs.
The Business is Growing
Perhaps you feel that you can manage all of the requirements above. Maybe you are really good at time management and accounting software. However, can you really say that you can still manage it when your business starts to expand? After a certain point, the finances start getting overwhelming and no matter how good you are at them, you cannot manage all of them. New customers, new employees, new profits, and new expenses all result in more work needing to be done and to track more money. This is the turning point where you start to feel truly suffocated by the endless paperwork. When your business starts seeing rapid growth. It is time to assign an accountant to do the heavy lifting for you. You will be thanking their services later once you get to see the extra income that you can invest in different parts of your business.
Other Benefits of Having an Accountant
If the above-mentioned details weren’t enough, there are other factors that the services an accountant provides can positively contribute to your business.
1) Financial Planning and Forecasts
When you have perfect knowledge of where every dollar is going, it becomes infinitely easier to redistribute your funds to where they would be more fitting. It also allows you to better plan your budget for the times ahead which leads to a boost in efficiency.
2) Being Better in Sync With State Regulations
It is an extremely risky game to only have an idea about how state regulations function. If you are conducting business outside of these regulations, you risk major financial penalties being imposed on your business. This move will end up costing you a lot more than simply hiring an accountant to ensure that all of your business transactions and taxes are up to date and within regulations. Good accounting practices will let you sleep soundly at night.
3) Always Possessing the Relevant Financial Data
For growing businesses this is key. You can keep perfect track of every invoice, payment, and transaction. Leading to an efficient response to any financial anomaly.
If you are struggling with any of the above-mentioned factors, don’t try to overwork yourself just to save a few bucks, it will end up costing you a lot more than you would at first think. Both in terms of money, time, and, most importantly, nerves. So, good luck with your business, and till next time!