Anyone who operates a business in the US knows how important it is to manage your finances. You may be able to perform simple bookkeeping and financial management yourself early in your business, but ultimately you need professional help. A poll by the National Small Business Association found that 42% of small business owners find controlling money & taxes is their greatest challenge. This statistic reflects a reality many entrepreneurs face. So, knowing when you should get professional accounting assistance can make a huge impact on your business success.
When to Hire an Accountant for Your U.S. Business
Here are some points in your business journey when hiring an accountant might be beneficial or necessary. So, if you simply need professional accounting help, or help filing taxes, knowing when to outsource accounting services will save you time, money and aid you with better financial choices.
Starting Your Business
The start of your business is also the start to your financial future. As an entrepreneur who needs to cut costs, you want to get it done yourself, but when it comes to finances, you want everything done right from the beginning. A professional accountant can create accounting programs, handle start up costs, and also follow local, state, along with federal regulations.
When to engage an accountant during the start-up stage :
- You're unsure about tax registration and compliance.
- You need advice on choosing the best accounting software to control your finances.
- You are creating a complicated business structure like an LLC or corporation with more complicated financial regulations.
An accountant may also inform you on how you can structure your business to get the best tax advantages for dealing better with your finances.
Managing Rapid Business Growth
Your business expands and so do your finances. With rising revenue, an expanding customer base and growing operations, your current financial systems can barely cope. Fast growth could be a burden instead of a success story without correct financial management. And that is where an accountant is able to assist with the expertise to manage such growth responsibly.
When you should hire an accountant in case your business is growing:
- Your revenue and expenses are increasing.
- You are hiring personnel or contractors and need to know about benefits and payroll.
- You are entering new markets or opening new locations.
An accountant can assist with financial forecasting, budgeting and cash flow so your company expansion does not cause financial mistakes. They may also enable you to improve your resources, cut needless costs and set up your finances as you scale.
Dealing With Tax Season
Many business owners find tax season to be among the most stressful times during the entire year. U.S. tax regulations are complicated and mistakes might result in penalties or audits by the IRS. Even if you have been keeping up with your business's day to day finances, tax preparation might require more understanding of deductions and tax laws which could benefit your business.
When you should hire an accountant during tax season:
- You feel overwhelmed by the paperwork and due dates for tax preparation.
- You do not know which deductions and tax credits your business is entitled to.
- You received a notice of audit from the IRS and require expert assistance with it.
An accountant will assist you to file your taxes promptly and make the most of all available deductions and tax reductions. They may even represent your business throughout an audit to lessen your trouble and assist you to resolve problems quickly.
Handling Financial Strategy & Planning
It is not just about tracking expenses on a day to day basis. It's around long-term goals and wise choices that propel your business ahead. Accountants know not only tax compliance but also about good financial strategy. They can enable you to develop budgets, anticipate future revenue and make development strategies to keep your business healthy money wise.
When to obtain an accountant for financial strategy:
- You're expanding your company, purchasing a competitor, or entering a brand new industry.
- You're considering securing a business loan or seeking investors and need detailed financial statements.
- You want a financial plan which suits your long-term business objectives.
A professional accountant can review your financial statements and trends and recommend ways to improve profitability and cash flow. They may even advise you on how to obtain investors or financing, or even how to deal with complicated financial transactions.
Managing Complex Financial Transactions
You might find yourself performing increasingly complex financial transactions with your business that need expert oversight. Regardless of whether you are purchasing or selling assets, merging with another business or transforming your company, an accountant will help you ensure everything goes smoothly and inside tax law.
When to hire an accountant for complex transactions :
- You are involved in a merger and sale.
- You are purchasing or selling a substantial asset like property or equipment.
- You are restructuring your business ownership or its financial structure.
In these circumstances, an accountant will assist you to understand the financial and legal ramifications and reduce tax liabilities and save you from errors.
Final Thoughts
Every business owner has to think about employing an accountant. Whether you are getting started, handling fast growth or handling big transactions, an accountant can offer expertise which saves you money and time. Know when to get professional help so your business stays profitable and in accordance with regulations. In case full time accounting is not an option, outsource accounting services are a flexible and affordable method to handle your funds while you concentrate on running your company.
Trust The Fino Partners for expert accounting services in the USA. Get in touch with our team of experts today!
