Managing your finances becomes tough as your business grows. Although many business people start keeping their very own books, the moment eventually comes when you can’t work without an accountant. A recent survey found that 40% of small businesses think bookkeeping and taxation are the most difficult areas of operating a business. That is nearly half of business owners struggling with financial management. Let’s understand their need in detail.
When Should You Hire an Accountant
Whether you want to hire an accountant or not, here are ten signs your U.S. business may benefit from accounting outsourcing:
1. You Are Starting a New Business
Launching a new business is exciting but complex - particularly the finances. From deciding on the company system (LLC, corporation, etc.) to creating your accounting system, an accountant can help you start off right. They'll explain your tax responsibilities and help you make sound financial choices from the beginning.
Without them, you could make costly blunders which could harm your business over time without sound financial guidance. Accountants might even assist you to create financial forecasts for the future.
2. Your Business Is Growing
Growth is great, but it also brings greater complexity. Cash flow management, payroll along with correct financial statements turn into challenges as your business expands. If you spend way too much time on your books rather than growing your business, you might want to get an accountant.
Accountants can handle the finances of growing businesses. They will help you scale your accounting procedures and also offer insights which aid your financial choices as you develop.
3. It is Tax Season
For every business owner, tax season is stressful. In case you ever felt stressed by the notion of filing taxes or concerned about missed deadlines, you are not the only one. Taxes are complex - and an error could lead to fines or even missed deductions.
Having an accountant will help with tax season stress. They will prepare your taxes correctly and enable you to save money. With professional help, you can concentrate on operating your business rather than stressing about tax compliance.
4. You Have Been Audited or Are Under Audit
The thought of getting audited by the IRS shakes any business owner's confidence. Even in case your books are in order, the audit process is often tough and slow. Accountants understand how to manage audits and can represent your company before the IRS.
In fact, businesses that have accountants tend to be not as likely to be penalized following an audit since accountants ensure all financial records are correct and in accordance with tax law. An accountant on your side can ease the anxiety of an audit and help your company get out of it without any major issues.
5. Managing Payroll Is Time-Consuming
Payroll is more than paying your workers. It includes withholding taxes, calculating overtime and maintaining accurate records for taxes. Payroll becomes more complex and more time intensive as your team gets bigger.
Having an accountant on staff can free up your time and enable you to process payroll promptly and correctly. Accountants are also current with payroll tax laws so you won't have to be worried about compliance. They will do the work for you, from calculating taxes to sending workers paychecks.
6. You Are Applying For a Business Loan
A business loan usually involves lots of paperwork - bank statements, tax returns and a business plan. Lenders would like to determine that your finances are in order prior to approving your loan. If your financial records aren't organized, it might be bad for your loan application.
An accountant can enable you to assemble all the papers and present them in a manner that appeals to lenders. They will keep your finances current and accurate so you stand a great chance of obtaining a loan.
7. You Want to Save Time
Your time is among your greatest resources as a business proprietor. When you are spending hours controlling your books, filing taxes or even fully understanding financial statements you are wasting time rather than growing your business.
Hiring an accountant lets you outsource financial duties to a professional. They will handle the accounting so you are able to concentrate on what you do best: running your business. Because of their assistance, you can improve your productivity knowing your finances are in great hands.
8. Your Financial Reports Are Inconsistent or Inaccurate
For sound business decisions, correct financial reporting is essential. If your financial reports are inconsistent or you are not sure whether they are true, you need an accountant. Incorrect reports could cause terrible business decisions, missed opportunities and even legal problems.
Accountants will keep your financial statements current. They can make custom reports on your business performance to enable you to make educated choices.
9. You Want to Expand or Franchise Your Business
In case you are considering growing your company or launching a franchise, your finances simply get even more complex. From managing multiple locations to franchise costs, you need expert advice on making sound financial choices.
An accountant can assist you with the financial side of expansion, like how to handle the brand new cash flow, track costs and file taxes. Their guidance could make your expansion easier and more profitable.
10. You Want to Plan For The Future
Any prosperous business must plan for the future. Regardless of whether you are saving for a tough day, preparing for retirement or even preparing an exit plan, accountants are your ideal financial planners.
A professional accountant can enable you to create financial forecasts, budget for future expenses and taxes, and develop a long-range plan for your company. Because of their assistance, you can keep your business financially healthy today and down the road.
Final Thoughts
Operating a business is difficult enough without needing to handle your finances also. In case all of these signs seem familiar, you may wish to call an accountant. They can ease the pressure, make sure your books are properly, your taxes are filed properly, and your business is on the proper financial track.
Hiring an accountant from The Fino Partners means investing in your business's future. With us, you can do what you do best - operating your business - and leave the financial details to our professionals.
READ ALSO | How to Hire an Accountant for Tax Preparation in the U.S.
