In the early phases of a business lifecycle, the important members of an organization, especially owners, might need to wear different hats. On any given day, you can play the role of an accountant, salesperson, secretary, CEO, and even an intern based on the needs of your business.
Although this juggling might work initially, as your business grows, this trick becomes unmanageable. For example, financial planning will be time-consuming and nuanced, especially if you work with compliance standards or stringent regulations.
To that end, all growing businesses reach a stage where hiring an accountant becomes important. But how will you know that it is time to enlist the services of an accountant? According to experts at Evolved, LLC, here are signs to look for.
1. Tax Deadlines
These tax deadlines are not traps to catch you off guard or lead you down the road of court dates and fines. They are just there to ensure you know when to file taxes and pay them.
If you fear upcoming deadlines, odds are, you may not need to control your finances. Missing tax deadlines and dealing with those ramifications is bad for business. If that sounds like you, ensure you find tax compliance services before it becomes too late.
2. Outdated Accounting Tools
Accounting serves as the lifeblood of many businesses. If handled well, they will help track and manage your business’s expenses and revenue. That said, your accounting systems should be regularly updated to ensure you maximize value in time spent when it comes to accounting responsibilities.
Business owners usually use Excel for their accounting needs and depend on manual inputs and workarounds to track data and transactions. But thanks to financial technological advancement, there are several accounting software solutions which may help organize all your financial data.
If your existing accounting tools need to be updated, you will need to upgrade to the right cloud-based accounting software. And if you don’t know how to use it, you can hire an accountant to help. Their insight and expertise can help you set up the software to fit the specific needs of your business to avoid paying for the features you don’t really require.
3. Start a New Business
When starting or opening a business for the first time, you will have a lot of decisions to make. The decisions you make affect the future of your business.
Hiring a professional accountant for their advice can help you see the best financial options. Plus, a professional will ensure you stay compliant with local, state, and federal regulations.
If you are unsure how to launch a business and you don’t want to do everything alone, you can turn to a professional accountant to provide you with several financing options, get a business permit/license, sign up for a new employer account, and choose the structure of your business, like sole proprietorship or LLC.
Final Touches
If you ever find yourself relating to any of these signs, then it is time to hire a qualified accountant. At first, your main concern might be the added expense of outsourcing accounting services to an accountant. But in many cases, you will save a lot of money by hiring an accountant.
