Most small business owners do not start out with a business accountant. However, there can come points in your operation when it is extremely important to bring in the aid of one of these professionals. Here is a look at five signs you need a business accountant.
You No Longer Have Time to Dedicate to Accounting
Sometimes, the most obvious sign that you need a business accountant is a simple thing: you just do not have the time to dedicate to keeping up with the financial aspects of your business. Lack of time can lead to overlooked issues that cost you money, so bringing in a professional is a wise move to make.
Your Business Is Obviously Growing But Your Profits Are Not
You have seen your revenue grow by leaps and bounds, but for whatever reason, your bottom-line profits are not growing as much as what it seems they should. This is a really big sign that you need to bring in the professional expertise of a business accountant. These are some of the things your accountant will do to determine what is wrong:
- Examine your operational costs and determine what is wrong.
- Look at how much you are spending on payroll to determine if you can save.
- Go over your costs versus your profit to determine what is causing losses.
You Are Getting Intimidated by Your Small Business Taxes
Maybe you started out doing your own business taxes and did just fine. However, as your business grows and you acquire more inventory, revenue, and vendors, your business taxes can get way more complicated. If you are at a point in which you don't feel comfortable doing your own taxes, it is time you should have an accountant.
You Have Investors That Expect a Certain Level of Professionalism
Not all small businesses will have investors, but many do acquire investors when they start to grow and flourish. If you manage to get a few investors, don't be surprised if they are a little more stringent about financial accountability. They will likely expect to see professionally drafted financial documents and reports rather than you just pull together on your own.
You Have Been Notified That You Will Be Audited by the IRS
Tax audits can be extremely intimidating, and your financial records must be up to par so you do not end up in any trouble. A business accountant can help you get properly prepared for this audit.
For more information on how to improve your small business's financials, contact an accountant in your area.