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.

Small business owners 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.
  • Taxes
    • 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.

Check out America's Best Bookkeepers Signs it may be time to hire an accountant

Your business is growing

Business is doing great and you’re ready to expand. Perhaps that means hiring more employees, more vendors, buying property, or even expanding. These are all wonderful, but can cause some serious complications if you’re not prepared for them. When it comes to rapid growth, paperwork can become longer and harder to deal with. This is where an accountant can help take the reigns and straighten out all legal, business, and tax paperwork your growing business may accumulate. As far as expansion, when it comes to buying/selling property, an accountant can help you through the process and create a plan that will work best for your company. They also can help you avoid fees or unnecessary taxes.

Applying for Loans

Like most businesses, you’ll eventually have to apply for a loan or a business credit card. In some cases, you’ll be working with Investors. Investors, loan officers, and banks are going to want detailed and accurate financial statements. Accountants can take the pressure off of producing such documents that become more complicated and detailed as your business grows.

You have a hard time with Taxes

This is pretty simple. It’s no secret that the U.S. tax code is detailed and confusing and, unfortunately, is always changing. Accountants stay up-to-date on all occurring changes the U.S. Tax Code may be implementing and can assure that your company complies with all new codes and structures. This way, your company is safe from any unnecessary audits, fees, or penalties. Not only can they help you do your taxes right, but they can also assure that your company gets the right tax credits and deductions to keep costs low. *Note* If you are facing an audit and are unsure what to do, we highly recommend bringing in an accountant no matter what the case may be.

Accounting and Bookkeeping Tasks are Keeping You Away from Other Priorities.

Let’s say you’re pretty good at accounting and have managed to accurately keep yourself afloat without one for several quarters, but your business could use a little “sprucing up.” Accounting and bookkeeping tasks are long and time consuming. If you find that these tasks, as a business owner, is keeping you away from reaching your full potential, it may be time to bring somebody in so you can focus on more business development to help your company grow. Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.