If you're a small business owner managing your money yourself, you may be doing pretty successfully - as of now. After all, all the tools you need are found on the Internet, and you don't even need financial knowledge or experience to use them. But as your business expands, you may have a hard time managing the complexities of your growing financials, not to mention the legal and compliance issues that come with it. Surely, a professional will be able to help.
Here are specific scenarios that serve as signs you need to hire an accountant:
Your knowledge about accounting is limited.
If you are confused by financial statements and accounting terms, think reports are too complicated, or you're unfamiliar with the U.S. Tax Code, then you certainly need an accountant - at least in the beginning - to teach you all of these things.
Bookkeeping takes up your time.
Perhaps you do know something about accounting, but it feels like it's taking you forever that you no loinger have enough tie to manage your business well. Hire an accountant so you can concentrate on what you do best, which is your business. Know more about accounting at http://www.dictionary.com/browse/accounting.
Investors want professional financial reports.
An accountant can create reports that will keep your investors happy while you remain focused on managing your business.
You experienced rapid business growth.
It's good that your business is booming, but note that this is accompanied by more customers, more employees, more vendors, etc. Of course, that also comes with more paperwork and number crunching, and the reality that you just can't manage all of these yourself in an effective manner.
Your revenue is on the rise but not your profit.
If you know you've been selling a lot but your profit seems to be hardly moving, an accountant can take a look at your financials and recommend adjustments, such as reducing a few overhead expenses, with the goal of expanding your profit margin.
You're branching out in another state.
If you have plans of expanding into another state, an accountant at judgeaccountants.com.au will help you comply with all the regional tax reporting requirements.
You intend to buy or sell property, or sell your business.
Whether you want to grow via an acquisition or sell your business in part or in whole, an accountant can help you determine how to best structure the transaction so that your taxes are be kept to a minimum.
You're facing an IRS audit.
Should you find yourself in the messy process of an audit, an accountant can take over and represent you before the IRS.
If you've come to the decision that you need an accountant, your next step is to choose the right one. Not all accountants are the same, and like lawyers and doctors, they too have specialties. A little homework can make a huge difference. Click!