Does Your Small Business Need An Accountant?

15 Dec Does Your Small Business Need An Accountant?

Running a small business can be very rewarding, but it also takes quite a lot of work. In addition to renting or purchasing commercial property, hiring employees, and securing vendor contracts, you must also maintain the financial aspects of your business. In some cases, it will be easier to hire an accountant than to try to handle the finances by yourself. Consider the following to determine if an accountant is the right choice for your business.

Do You Need to Write a Business Plan?

Writing a business plan is essential if you intend to seek investors or apply for a business loan. A solid business plan must include information such as what you intend to spend and how much you think you will earn in profits with your company. If you have never written a plan before, the process may seem daunting. However, hiring an accountant to help you in the earliest stages of creating your business can ease the stress.

An accountant can use special software to create professional financial reports and projections for your business plan. By taking such an important step, you show potential lenders that you are serious and committed to your company.

Do You Need Time to Focus on Other Tasks?

Starting a new business or growing an existing one takes quite a lot of work. Even if you have enough accounting knowledge to take care of your own books, you could find the time to do them takes away from other important tasks. By hiring someone to take care of the financial side of your company, you free your time to develop new products or services, advertise more effectively, or work on team-building activities with your employees or business partners.

Do You Know How to Prepare Taxes?

Filing business taxes is extremely complicated and doing so incorrectly could result in time-consuming and stressful IRS audits. You may also need to pay expensive fines or penalty fees if you file incorrectly. By hiring an accountant to help you keep detailed financial records and prepare your taxes each year, you ensure your tax papers are correct and save yourself potential stress. An accountant may even be able to help you find deductions you didn’t realize you could use, saving you money in the long run.

Should You Hire a Freelancer or Keep Someone on Staff?

If your business is very small, you may not need an accountant more than about once a month. However, as your company grows, you may need someone on a permanent basis. In this case, it is probably more cost-effective to hire a part- or full-time accountant.

Do You Have Another Option?

If you are adamant about handling your business finances yourself, consider getting a degree. Northeasternhas a Master of Science in Taxation program while UAB offers several programs to do with corporate finance.

Regardless of how you decide to handle the books for your company, ensure you don’t let them fall by the wayside. Disorganized financial records can cause the downfall of even the most solid companies and can even affect your personal finances in some cases.

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