There is no fixed point and time, no signboards that say you need an accountant. Having it’s quite simple really. You start a business, you better have an accountant to handle the finances. A small business accountant is crucial for the success of your company.
You may think that it won’t be a problem handling finance. You can do it on your own, and in most cases, you will be right to assume that. However, when you’re starting out, you will have to handle a lot of things other than just finances. Accounting isn’t just about keeping track of the cash flow, it’s more than that.
Here is a list of things that indicates it’s about time to hire a small business accountant:
Not having a clue
Taking care of finances can be especially hard if you don’t know what you are doing. Managing finances can be pain during the early stages of a business. Even those that have experience in the field find it difficult to juggle; in between work and accounting.
An accountant can help you create a sound financial strategy that will help you get your business up on its feet and maintain it for days to come.
Constructing a legal structure
Running a business means paying taxes which is often determined by the legal structure of the said company. For example, sole proprietorship allows you to operate your business under your own name. This will help you reduce the amount of tax you pay by incorporating in your living expenses.
There is much other legality that you need to consider when framing your legal structure, so make sure you have an accountant nearby.
Sudden growth
One thing about small businesses is that they are unpredictable and require a tremendous effort to get things going.
One moment your business may not be doing so well, and in the next moment, it may as well explode. Increased business means more paperwork and more accounting. You need to be able to keep track of the cash flow and record it for future purposes.
At times like these, a dedicated accountant will certainly come in handy to handle all that extra pressure.
Audit
Rarely do small businesses get audited, but when it happens it is better to hire an accountant as it will save you a lot of trouble when the government is breathing down your neck.