https://www.completecontroller.com/wp-content/uploads/cclogo_main-long-300x63.png 0 0 Complete Controller https://www.completecontroller.com/wp-content/uploads/cclogo_main-long-300x63.png Complete Controller2017-06-02 11:30:482017-10-31 18:15:12When to Hire an Accountant for Your Small Business?
Deciding when, or if, your small business needs to hire an accountant can be a tough decision. If the day to day struggle of bookkeeping is taking you away from your time or profit seems to stay stagnant, it may be time to look into the benefits of hiring an accountant.Many small business owners have faced the question, “When should I hire an accountant?” at some point or another during their careers. It’s a tough question and the idea of spending extra money for something you’ve been doing yourself in the past can seem daunting. If your small, or new, business has been faced with this question, it’s time to look at a number of things. In this article, we are going to talk about situations that may require an accountant, what they do, and what that means for your business in the future.
What Do Accountants Do?Before we get into the nitty gritty of whether your company needs an accountant, we should first start by clarifying what business accountants do. To begin, not all accountants or bookkeepers are full-time. Many small businesses do one-time hires, quarterly, and so on. With that said, here are the 5 fundamental tasks business accountants perform:
- Setting up systems
- As we stated before, not all accountants are full time hires. Some small businesses choose to hire an accountant at the beginning to help them “set up shop.” There are many accounting softwares like QuickBooks that help the average business owner complete daily tasks, however proper set up is key.
- Entering data (maintenance)
- As businesses grow, so do their numbers. Entering in data precisely and without error is key to a functional business. These tasks can be time consuming and require additional help.
- Reporting Results and Forecasting
- This task is very crucial to business owners, small and large. Accountants can take a look at real time facts and numbers, create reports on profits, or loss of profits which can otherwise be confusing to non-trained business owners. Many of the accounting softwares available for purchase offer forecasting options, but they are very basic. A real-life accountant can produce more detailed forecasting.
- Another aspect to this is creating Financial Statements. Eventually, your business may need to apply for a loan or a credit card. Banks and other institutions are going to ask for 3 Purpose Statements (P&L, Balance Sheet, and Cash-Flow Statement). These need to be precise and detailed the first time.
- This is pretty self explanatory. The bigger your business grows, the more complicated your taxes get. Accountants not only do your taxes, but they also help get you the credits and deductions you otherwise would have missed.