As a small business owner, you’re expected to be a Jack of all trades. You must simultaneously be a dreamer, a professional, a marketer, a boss, and a financial expert.
While some of the hats are easy enough to don (or at least pretend to), failing to keep your financial house in order can quickly result in the faltering of your business. You need to be honest with yourself and decide whether or not you need an accountant to help you out.
But how can you be sure you need one?
1. You Don’t Know How to Track Your Finances
The main purpose of any business is to make more money than is spends keeping up with expenses. Whether you’re using Wave vs QuickBooks or visa versa, if you’re not tracking your finances, you have no way of interpreting how well your business is doing.
If it’s an obligation you always put off or you simply don’t have the time or know-how, you need an accountant to maintain your bookkeeping. They’ll track every dollar coming in, as well as every expense. It’s just as important to know where your money is going rather than just how much is being spent.
2. You Don’t Know How to File or Pay Small Business Taxes
Many small business owners are independent go-getters who do their own personal taxes. While it may be tempting to do the same for your small business, understand that business taxes are much more complex than personal taxes.
There is a lot more room for tax write-offs, but if you try to get away with too much, it might trigger a tax audit. You may need an accountant, even if just for the first few years, to help you navigate your business taxes. They can also give you an estimate of how much you should be paying on your quarterly taxes.
3. You’re Scaling Your Business
Having a booming business is never a bad thing. If you can’t keep up, it just means you need to hire on a little more help, especially if you’re deciding to expand.
You may need an accountant to help you understand your best possible growth strategy (new locations, new hires, better marketing, new products, etc.). They’ll be able to look at the numbers to determine what you can and can’t afford, as well as any risks involved.
4. It Seems Like Your Business is Spending Too Much Money
Small business owners who are inexperienced with financial management may find themselves at a loss each month. Where did all their money go? Shouldn’t there be more left at the end of the month?
If you find yourself in this position, always seeming to have spent more money than you should have, you probably need an accountant to help you get your budget in order.
5. You Have Problems With Payroll Each Month
Finally, if your small business has any employees (other than you), you need a reliable and consistent payroll system to make sure you’re taking care of your staff. However, payroll can be difficult to manage, especially for busy or inexperienced business owners. You may need an accountant to help you set up a payroll system and ensure everyone’s getting accurately compensated.
Do You Need an Accountant?
If you’re a business owner who feels like they’re in over their head with finances, don’t put it off any longer. You don’t have to do this alone, you need an accountant. However, if you’re looking for any other information or advice, be sure to check out some of our other articles on business before you go.