So you’ve started a business. It’s gotten off the ground and is starting to bring in some profit. You’ve been handling the various aspects of the business on your own up until now, but as things continue to expand you are starting to ask yourself “when is it time to get an accountant?”.
Maybe you have a good understanding of how your business’ financials need to be dealt with. However, as your business grows, financial tasks are going to become more in depth and complicated, take more time to complete, and have more risk of error.
While each business owner is different in terms of how well they understand the accounting aspect, and whether or not they wish to do the work themselves or outsource an account, it is important to know when your business will benefit from having a professional step in.
Ah tax time, our favorite time of year. During the initial stages of starting your business, your tax return will most likely be relatively simple. During this time, you should be able to manage your income tax return on your own or with the help of a tax preparation software.
If you’re self-employed for example, an accountant can be a huge help.
As your business begins profiting, bringing in investors, hiring employees, etc. however, your taxes will become more in-depth regarding various deductions, shields, and credits and the calculations required for certain categories.
To avoid any misinformation or miscalculation in the taxes owed, it is best to have a professional work on your taxes after the business is through the beginning stages.
As your sales begin to pick up, your financial reports will become longer and more complicated. Cash flow will increase, balance sheets will become more difficult to balance, and expenses and revenue will constantly tweak your net worth. Aside from these weekly, monthly, and annual reports that will need to be completed, accurate projections will become more important as well.
Being able to read and understand a financial report is an essential for any business owner, but using this information to create projections and targets is not easy. These are documents that you will want to be as accurate as possible, to avoid any trouble, and to have ready for potential investors. Such important documents can only benefit from the knowledge of a professional.
The more people you employ, the more work payroll becomes. You have to deal with benefits, deductions, bonuses, and more. While payroll is not necessarily the most complicated aspect of running a business, it does take time away from other areas, that may benefit more from your attention.
It May Be Time!