Many US -based small business owners still don’t know that more businesses fail in a year than are established in the competitive market of the USA. More than 80% of small businesses fail because of cash flow issues alone. A significant accounting blunder can cause severe financial trouble for entrepreneurs. Whether you are just getting started or have been operating your business for years, you must know that keeping up with figures of income, expenses and taxes could be a bit challenging. This is where an accountant for small business can really make a difference.
You might be asking: Do I require an accountant or could I do my small business accounting on my own? Many business people attempt to do it all, however as your business gets bigger, so does your financial responsibility. Employing an accountant or outsourcing accounting solutions can help you save time, stress and money later on. Let us share some signs that could suggest that your small business might need professional accounting help.
How to Determine If Your Small Business Needs Accounting Help?
Here are some questions that you must answer in order to answer the ultimate question “Does My Small Business Need Accounting Help?”:
1. Are You Over Spending Time on Bookkeeping?
When you began your business, you most likely did not believe you'd spend hours a week entering information, coordinating invoices and also maintaining books balancing the books. If bookkeeping is consuming too much time, you need an accountant. You ought to be expanding your business, appealing to clients and also generating revenue - not managing financial spreadsheets.
What an Accountant Can Do:
- Simplify bookkeeping procedures.
- Automate invoicing & expense monitoring.
- Provide real time financial insights.
- Free up time to expand your business.
Hiring an accountant so you can focus on your business goals is the number 1 reason you should invest in the services of a professional accountant today.
2. Are You Having Trouble with Taxes?
Tax laws are complicated and change often. Missing a deadline, filing improperly, or not taking advantage of deductions could cost you a lot of money. Accounting help for small businesses helps with taxes and averts fines.
Signs You Need Tax Help:
- You've questions about tax deductions and credits.
- You missed tax deadlines before.
- Your business is expanding and tax returns are getting complicated.
- You have gotten IRS notices or audits.
What an Accountant Can Do:
- Meet state, federal, federal, and local tax laws.
- Make the most out of tax deductions and credits.
- Prepare and file accurate tax returns.
- Handle IRS correspondence & audits.
3. Are You Making Business Decisions Without Proper Financial Data?
Without a solid grasp of your financial health, you could be making costly blunders. Just how much profit did you generate last month? Are your expenses in control? Would you afford to pay for a new employee? Without proper accounting, these decisions are just based on assumptions and not calculated data like a growing business should make.
What an Accountant Can Do:
- Give accurate financial reports (balance sheets, income statements, cash flow statements).
- Examine your profitability & cash flow.
- Help you make a budget & financial plan.
- Provide suggestions on scaling your business.
A professional accountant records numbers and then helps you interpret them to make better business decisions.
4. Are You Getting Ready for Business Growth?
In case your business is growing, your accounting requirements will get more complicated. So, whether you are hiring new workers, introducing new products or opening a brand new location, you want an expert for managing financial growth.
What an Accountant Can Do:
- Establish payroll systems and tax compliance.
- Manage cash flow to fund business expansion.
- Obtain business loans or investor fundraising.
- Create financial projections to guide planning.
Growing your business makes financial management more critical. The right accounting helps you maintain your expansion streak.
5. Are You Stressed About Cash Flow?
Even profitable businesses might have problems with cash flow. In the event you end up lacking in money, behind on bills or even awaiting customer payments, you find an accountant.
Common Cash Flow Problems:
- Late consumer payments.
- Unexpected expenses eat away funds.
- Difficulty covering payroll or even operational costs.
- No clear plan for controlling revenue and expenses.
What an Accountant Can Do:
- Design a cash flow management approach.
- Implement invoicing and payment tracking.
- Find areas to cut costs.
- Help secure financing if required.
Avoiding cash flow crises can keep your business operating smoothly and minimize unnecessary stress.
6. Are You Considering Requesting a Business Loan?
In case you wish to get a loan or invest, your financial records must be in order. Lenders and investors want to view accurate financial statements, profit patterns and projections before they invest.
What an Accountant Can Do:
- Create financial statements that lenders and investors trust.
- Organize finances to boost your chances of loan approval.
- Assist with business valuation and growth projections.
- Confirm financial reporting standards.
Having an accountant on your side whenever you seek funding can help you build credibility and improve your chances of obtaining the capital you require.
7. Are You Using the Correct Accounting Software?
Many business people have accounting software like QuickBooks, Xero and FreshBooks, but few understand how to use them correctly. In case you are having difficulty with all the program or even making errors, accounting help will save you frustration and time.
What an Accountant Can Do:
- Recommend the very best accounting program for your company.
- Configure the software according to your liking.
- Train you & your team on how you can use it right.
- Be sure your data is entered and reported accurately.
Selecting the right accounting technology may simplify financial management, but having an accountant guiding you is way better.
8. Are You Concerned About IRS Audits?
An IRS audit is every business owner's nightmare. Although audits are uncommon, some red flags - like frequent mistakes, late filings or incorrect deductions could trigger IRS scrutiny. In case you worry about compliance, hire an accountant before it is way too late.
What an Accountant Can Do:
- Confirm financial reporting to steer clear of audit triggers.
- Assist with responding to IRS notices and audits.
- Keep detailed records to support tax filings.
- Propose professional representation in case of an audit.
Keeping your business away from IRS troubles is an excellent reason to employ an accountant in the US market presently.
Final Thoughts
In case any of the above given situations seem familiar, you may wish to employ expert accounting assistance for small business. Running a business is tough enough - why add financial stress to that load as well? An Accountant for small business will enable you to remain compliant, make much better financial choices, and expand confidently.
We at The Fino Partners provide small businesses with expert accounting solutions. With 15+ years in business, 250 accountants and 350 businesses trusting us, we provide customized financial solutions to keep companies like yours stress-free and profitable.
So you may be asking, do I need an accountant? If you want to save time, prevent errors and concentrate on growing your business, the answer is yes, you do.
Call The Fino Partners today to see how we can assist with your accounting needs!
