Did you know that 61% of small businesses in the US state that they struggle with cash flow frequently? This includes late invoices, poor budgeting, undefined taxes and bookkeeping blunders. If you feel that your finances are out of hand or you have no idea where your hard earned money is going, it’s time to think if you want to hire an accountant.
It might seem like managing your finances by yourself at first is fine. But the more stuff gets complex, be it in your private life or your business, the tougher it is keeping up. This is particularly true if tax laws change or you begin handling multiple income streams. So, in case you have been thinking you should employ an accountant, below are seven signs that professional help is more of a necessity for you in 2025.
7 Signs It’s Time to Hire an Accountant
Here are seven signs that you want to hire an accountant for professional help in 2025.
1. You are Starting a Business or Side Hustle
Setting up a business takes more than a catchy name and a site. You have to determine which type to choose - sole proprietorship, LLC, or S-corp? Which taxes will apply? How can you keep your personal and business cash separate?
An accountant could explain all this for you. They'll help you register correctly, avoid common startup blunders and create clean bookkeeping right from the start.
Starting off wrong financially can result in headaches afterward, including IRS penalties and sloppy audits. Hiring an accountant early saves time, money and stress.
2. Tax Season Gives You a Headache Every Year
If every April makes you worried, you are not the only one. It is the tax season when forms, receipts, deductions and deadlines are plentiful. And unless you understand the IRS guidelines in detail, you can make errors which set you back refunds or result in audits.
In case you employ accountant support for tax filing, they do more than fill out your paperwork. They also look for deductions you missed, ensure you are complying with laws and enable you to plan better for next year.
Even if you use tax software, you might miss deductions or apply rules incorrectly. An accountant backs the software with human experience.
3. Your Books Are Always a Mess
Let us face it, bookkeeping services isn't for everybody. Tracking expenses, matching invoices, and reconciling accounts is tedious and easy to fall behind. If you continue ripping up receipts or are uncertain if your records are true, that is a red flag.
Accountants help you develop appropriate systems for organizing stuff. Some even provide cloud based tools to track your business finances in real time.
A clean set of books will help you in tax season as it allows you to track your money movements every day.
4. You are Making More Money but Not Sure Where it is Going
If your income has increased but your savings haven't; it might be time to stop and consider: "Where is all of this money going?"
This is a classic case of hiring an accountant to help stabilize your cash flow. An accountant can review your spending habits, tell you where cash is being wasted and recommend a budget or investment program that suits your requirements.
The more you earn, the more complex your finances get. An accountant makes sure that higher income also results in financial growth.
5. You Are About to Make a Major Financial Decision
Thinking About purchasing a house, purchasing property, launching a second business or retiring? All these decisions have serious financial consequences, including taxes and other financial changes.
An accountant crunches the figures and plans for the future. For instance, they may explain exactly why owning property is much better than repaying debt first, or how to deal with capital gains if you sell an asset.
Unguided financial choices can result in surprise tax bills or very poor investment returns. It’s best not to take any chances.
6. You Got an IRS Notice (or Fear One is Coming)
Few things make you so anxious as getting a letter from the IRS. It might be a random audit, a request for missing papers or a penalty notice, it could be frightening to stand alone.
If you get flagged or worry that you will, it means you need an accountant. They'll help you respond right, represent you in case necessary, and even fix past problems in your filings.
Accountants can lower or negotiate penalties, correct past returns, and make your case stronger during an audit.
7. You Are Stressed About Your Finances All The Time
This is the most important sign and the one people tend to ignore the most. In case you keep stressing about cash, missing payment due dates or are uncertain whether you're financially secure, you might want outside help.
Related Resources
- When Should You Hire an Accountant For Your Small Business?
- Need More Time & Accuracy? Hire an Accountant for Your CPA Firm
- Hire an Accountant For Your Business: Benefits, Eligibility, Process
Hiring an accountant helps with more than just financial reports. That offers you peace of mind. Knowing your taxes, savings, spending and investments are in great hands enables you to concentrate on your loved ones, profession or expanding your company.
You work for your money and managing it shouldn't be risky. Whether you get overwhelmed with tax season, are thinking of launching a new company or just get lost looking at your bank account, this is the time to take control.
If even one or more of these signs apply for you, don't wait. Hire an accountant who will simplify your financial life, help you save more and offer you peace of mind.
You and your finances both deserve professional care and our experts at The Fino Partners are here to deliver it. Get in touch with us today!
