4 Signs That You Need an Accountant for Your Small Business
There’s so much to think about when running the administrative side of a small business. As a small business owner, I understand the struggles with time and money you face daily in deciding what hats to wear and when to ask for help. When my husband and I owned our rental business, I, of course, acted as the Accountant for our company. I also acted as the Marketing Department, the Sales Department, the Logistics Department, the Procurement Department and went on occasional deliveries as well. I finally had to admit to myself that I wasn’t able to wear all of these hats 100% effectively. At best, it was more like 50%. Ultimately, I was sacrificing the success of our business if I didn’t make changes. Because Accounting was my area of expertise, I relented and began to find outside help for some of these other tasks that were just as important. Delegation wasn’t easy for me but I finally learned it was necessary for our long term success.
My experience shows me that Accounting tends to be the area that most entrepreneurs know the least about. We see so many courses on-line about marketing, leadership and sales but not nearly as many about Accounting. This post will help you to see why a trained Accountant is not only beneficial but vital to your success and your sanity.
A good Accountant truly is an investment in the financial health of your business, both now and in the future. Of course, every business owner has a unique set of needs and circumstances, so here’s how to tell if it’s time for you to hire an Accountant and get back to doing what you do best.
1. You’ve Made Mistakes Before
It’s no secret that accounting isn’t exactly simple. Innocent oversights and slight miscalculations are all too easy to make, but difficult to undo if they go unnoticed for too long. If you’ve made accounting or bookkeeping errors in the past then you’ll already know just how much time and effort is required to rectify them. Furthermore, mistakes on your tax return could result in huge fines. If you’re struggling to manage your accounts and keep accurate records, then it’s definitely time to seek help before these mistakes damage the financial health of your business or halt your growth. It’s time to graduate from those Excel spreadsheets!
2. You’re Short on Time
As we already discussed, running a business is time-consuming and there are always a hundred and one issues demanding your attention. With everything else going on, it can be difficult to find time to balance the books and ensure you’re on top of your finances. However, it’s really important to do this in order to maintain accurate records for tax returns, credit applications and financial planning. If you don’t have time to look after your finances, you need to seek the help of a professional Accountant or Bookkeeper who can. Hiring someone to “catch up” will undoubtedly cost you more in fees. Having a regular Accountant also gives you more time to spend on the other parts of your business that you enjoy the most.
3. You’ve Got an Audit Coming Up (or want to avoid one)
If an audit is looming, you are in for some sleepless nights if you aren’t prepared. It’s important to make the process as smooth as possible, so your accounts and records need to be squeaky clean and perfectly organized. Otherwise, you’ll be facing an overwhelming amount of work trying to straighten things out. Furthermore, any innocent mistakes you’ve missed could result in a hefty fine. Therefore, it’s worth finding an Accountant or Bookkeeper you trust who can get your affairs in order, find and fix any mistakes you’ve made and ensure that you pass your audit with flying colors. It will save you money not just in fines, but potentially in therapy fees, too!
4. Your Business is Growing
As mentioned, it’s never too early to hire the help of a professional Accountant but when your business is growing rapidly, it’s most definitely time to give up the DIY approach and retire those Excel spreadsheets. Rapid growth means new customers, new hires, more investment opportunities and many more demands on your time. This is certainly not the time to overlook or get behind on updating your financials. Hiring an Accountant can help you to choose potential investors wisely, manage your cash flow, save you money and increase your profits!
As your business grows, new financial challenges will arise and it’s best to have an expert on hand to deal with them when they do. Growth is fantastic, but it can lead to instability and the right Accountant can help to keep your business on the path to financial success.
Summary
If your business checks off any of the above boxes, it’s time to invest in hiring an Accountant to protect and improve the financial health of your business. Quality Accountants receive formal training for years in order to provide qualified services to their clients. Don’t make the mistake of thinking you can manage your small business’ accounting by taking a few online courses. In order to create a successful business, you need to treat it like a business, and that means taking your finances seriously and investing in the financial health of your organization.
