4 Signs That It's Time to Hire a Professional Accountant for Your Small Business
There's so much to think about when running a small business; you can't do it alone forever. Handling the financial side of your business is a full-time job in itself, and you can only afford to take your foot off the gas for a short time. Without external help, losing control of your finances is too easy, which can prove disastrous.
Many small businesses put off hiring an accountant for a later date, but it pays to do this sooner rather than later. Your business is most likely to fail in its early days, and during this time, any unnoticed accounting or bookkeeping errors could compound and devastate your budding enterprise.
A good accountant truly is an investment in the financial health of your business, both now and in the future. But, of course, every business owner has a unique set of needs and circumstances, so here's how to tell if it's time for you to hire an accountant and get back to doing what you do best.
1. You’ve Made Mistakes Before
It's no secret that accounting isn't exactly straightforward. Innocent oversights and slight miscalculations are all too easy to make but difficult to undo if they go unnoticed for too long. If you've made accounting or bookkeeping errors in the past, you'll already know how much time and effort is required to rectify them. Furthermore, mistakes on your tax return could result in huge fines. If you're struggling to manage your accounts and keep accurate records, then it's time to seek help before these mistakes damage the financial health of your business or halt your growth.
2. You’re Short on Time
Running a business is time-consuming, and there are always hundred-and-one issues demanding your attention. With everything else going on, finding time to balance the books and ensure you're on top of your finances can be challenging. However, it's imperative to do this to maintain accurate records for tax returns, credit applications and financial planning. If you don't have time to look after your finances, you need to seek the help of a professional accountant who can.
3. You’ve Got an Audit Coming Up
You may be in for sleepless nights if an audit is looming. Making the process as smooth as possible is essential, so your accounts and records need to be squeaky clean and perfectly organised. Otherwise, you'll face a barrage of work trying to straighten things out. Furthermore, any innocent mistakes you've missed could result in a hefty fine. Therefore, it's worth enlisting the help of a quality accountant who can get your affairs in order, find and fix any mistakes you've made and ensure that you pass your audit with flying colours. It will save you money not just in fines but potentially in therapy fees, too.
4. Your Business is Growing
As mentioned, it's never too early to hire the help of a professional accountant. Still, when your business is going rapidly, it's time to give up the DIY approach.
Rapid growth means new customers, new hires, more investment opportunities, and more demands on your time. However, this is certainly not the time to overlook your accounts. Hiring an accountant can help you to choose potential investors wisely, manage your cash flow and use your extra income wisely.
As your business grows, new financial challenges will arise, and it's best to have an expert on hand to deal with them when they do. Growth is fantastic, but it can lead to instability, and the right accountant can help to keep your business on the path to financial success.
If your business ticks any of the above boxes, it's time to invest in an accountant to protect and improve the financial health of your business. Chartered accountants train for many years to receive their qualifications, so don't think you can manage your small business accounts by yourself forever. To create a successful business, you need to treat it like business, which means taking your finances seriously and investing in the financial health of your organisation.