Imagine that you don’t have to worry about your books, your cash flows, or your taxes. Well, that’s what a good accountant will do for you. Small business owners often feel stressed over their business’ financial standing, and things start to spiral out of control from there. Put your business in a position to save on taxes, generate accurate reports, and make sound strategic decisions. Knowing when to hire an accountant for your small business can be tough. Let’s take a look at how to take this step.
What a Small Business Accountant Does
There are your books, financial reports, taxes, and decisions to make based on all of those. An accountant’s job is to keep your financial records straight and use financial reports to help you make sound strategic business decisions. Now, some business owners will take on the bookkeeping themselves. Some will outsource bookkeeping. Some have accountants that do it. In any case, an accountant will take those books, reconcile them, and run financial reports. Those reports become business intelligence needed to make key decisions, prepare for taxes, and update your business plan.
Signs that It’s Time to Hire an Accountant
Chances are, if you’re reading this blog post, you’re considering hiring an accountant to help you with your books. And there are several indicators that your business is ready to make that decision. Here are a few things to consider:
- At Startup: This time may have passed already, but every startup needs to hire an accountant to help get the books set up for success.
- Form of Business Change: If you’re looking to change the form of business (LLC, Corporation, etc.), you’ll want an accountant to spell out the tax ramifications.
- Before Startup: Hire an accountant to help with the financial plan part of your business plan. Of course, many accounting firms can help produce the entire business plan.
- Compliance: If your business is in a tightly regulated industry when it comes to finances, financial reporting, or taxes, you’ll need to hire an accountant.
- At Tax Time: Stay compliant with the IRS and save on your tax bill.
- Cash Flow Troubles: If your business struggles to cover payroll, pay vendors, stay current on rent, etc. then an accountant can provide advice and solutions.
How to Hire an Accountant
Hiring an accountant is a big decision, as important as hiring an employee or choosing a supplier. You want a firm or professional that is a match for your business, including personality, fee structure, values, and expertise. They need to have experience working with businesses like yours, including your industry, market, and size.
You also want a firm that offers the services you need, including bookkeeping, tax preparation and filing, financial reporting, and strategic advice.
Talk to a potential accountant about the transition. If your new accountant has a small business accounting system, make sure you know how you’ll migrate your data into that system. Your accountant should have a plan to get everything set up without any disruption to your business.
Take That First Step
Bringing on an accountant for your small business is not as scary as you might think. There’s certainly no judgment about your books, and there will be real financial benefits to doing so. At ASCEND, we’ll tighten up your books, save you money on your taxes, and provide the reports you need to make the best decisions for your company’s future.
Schedule your free consultation today. Call us at 888 297-3321.