If you're a small business owner managing your money yourself, you may be doing pretty successfully - as of now. Besides, you have all the tools you need on the Internet, and you won't even need any financial knowledge or experience. But as your business expands, you may have a hard time managing the complexities of your growing financials, not to mention the legal and compliance issues that come with it. Surely, a professional will be able to help.
Below are serious reasons to hire an accountant:
You have limited or no knowledge about accounting.
If you find financial statements and accounting terms too complicated, you can hardly create a report or you're totally unfamiliar with the U.S. Tax Code, then without a doubt, you need an accountant - at least initially - to give you lessons on these. Get more facts about accounting at https://en.wikipedia.org/wiki/Accounting.
You spend too long bookkeeping.
Maybe you do know a decent bit about accounting, but managing your books is keeping you from managing your business well. Get an accountant so you can focus on what you do best - running your business.
Investors want professional financial reports.
An accountant at https://judgeaccountants.com.au will be able to create high-detail, accurate reports that satisfy your investors and let you concentrate on running your business.
Your business experienced rapid growth.
It's great that your business is now more profitable, but keep in mind this also means more customers, a bigger staff, more suppliers, etc. Add to that more paperwork and number crunching, which means it's plain illogical to think that you can still do everything effectively on your own.
Only your revenue is rising, not your profit.
If you've been selling a lot but your profits don't seem to be moving a lot, you can hire an accountant to point out overhead expenses that you can reasonably cut down on, or recommend other adjustments with the goal of increasing your profit margins.
You plan to expand into another state.
If you're planning to expand your business into another state, an accountant can help keep you compliant with regional tax reporting requirements, learn more here!
You have plans of buying or selling property, or selling your business.
Whether you're thinking of selling your business partly or in whole, or you are looking to expand with an acquisition, an accountant can set up your transaction in a way that keeps your taxes low.
You're facing an IRS audit.
If you find yourself on the stressful path of an audit, an accountant can take care of everything, including working with the IRS on your behalf.
After deciding that you need an accountant, your next move is to find the right one. Not all accountants are created equal, and just like physicians and lawyers, they have specialties as well. A little homework can make a huge difference.