Small business finances are simple. Until they’re not. At some point in your business career, you’re going to need to hire an accountant. Even the most meticulous financial planning can’t fully protect you. According to Anaheim, CA, company Griffin Financial, the right advisor can “help take the guesswork out of preparing for the future.”
While hiring an accountant isn’t exactly fun, it’s not the end of the world either. And if your finances are in a rough state, an accountant can help smooth things out.
So, when is it time to get help? It depends on your business and how it’s progressing.
- You’re Just Getting Started
If you’re just getting your business off the ground, it could be a great idea to get an expert opinion. Do you need help with your business plans? What you do now will set the tone for your entire business.
You can eliminate a lot of future hassles by being smart right from the get-go. The relationship that you form with your first accountant doesn’t have to last the entire lifetime of your business.
When you set up your business, there are different legal structures that you can use. It’s not always obvious which one is appropriate. You need to carefully consider the advantages and disadvantages of each option.
If you’re a solo operation and you’re comfortable with the idea of being personally responsible for your company’s debt, you can become a sole proprietor. Or you might prefer a limited liability set up. A skilled accountant can walk you through the pros and cons of each.
- Your Finances Need Work
This one is obvious. If your business finances are too complicated to manage on your own, you have no choice but to speak with an accountant. Otherwise, important things will start to slip.
Keeping track of inventory, recording all of your sales, handling employee payments, there’s a ton of financial information that business owners are responsible for.
An accountant can take control of every aspect of your finances. For most people, this is a good thing. It frees up your time to focus on running your business. In addition to taking care of the grunt work, your accountant can also create reports so you can see how your business is performing.
You should be able to track where every dollar is going. If you can’t something is wrong.
An accountant will also manage your tax obligations. A mistake here could result in costly fines and problems with the government.
- You Need More Time
Even if you’re capable of managing your business finances yourself, that doesn’t mean that you have the time do so. As your business grows and becomes more successful, your time is going to be stretched very thin.
You don’t have to do everything. You’re the most valuable employee in your business but you’re not the only one. Off-loading some of the work off your shoulder and giving it to someone else can take care of a lot of stress.
There’s no reason why you should have to dedicate your time to routine accounting tasks. It’s a necessary part of the business but it’s not a necessary part of your day.
- You’re in Trouble
If you’re in any sort of trouble, an accountant can save you. For example, if you expect that you might get sued, it’s a very good idea to have your finances in perfect order. This is also true if you’re going to be audited. If your financial records exist in bulging files and boxes, you’re going to have to find someone to pour over all of the documents.
Your accountant may not be able to extricate you from your difficulties, but they can certainly make them easier.
Many, many business owners end up facing a lawsuit at some point in their careers. It doesn’t mean that your professional career is over unless you end up with a judgment that’s too heavy for you to pay. To avoid that happening, use the power of professionals. Speak with a lawyer and an accountant.
An accountant can also help you if you’re planning to file a lawsuit yourself.
There’s a lot to think about when you become an entrepreneur. But unless you’re in the financial industry, you shouldn’t have to think about finance rules and regulations very often. Doing so is very complicated. An accountant will do the work for you. Accounting for small business owners is much needed these days and you can make it easy with simple tips. You don’t need to hire someone but there’s a good chance that doing so would take a load off your shoulders.
