Do-it-yourself small business accounting is a popular option for modern business owners. But sometimes, the time spent and errors outweigh the costs of hiring a professional. Read on to learn when to hire an accountant for your small business.
When to hire an accountant
You don’t have the time or expertise
Every business owner has his or her strengths. You could be a marketing guru, a programming whiz or the world’s best salesperson. If your “superpower” isn’t finance, consider outsourcing your small business accounting. An accountant does mean expenses for your business. But, you can now devote that freed-up time to other things.
That could include sales, research, marketing, customer acquisition or development. The profits you garner from these activities can more than pay for the cost of the accountant. Additionally, you can write off many business expenses, including accounting fees.
You’re forming a new business
It may seem odd to hire an accountant before you’ve chosen your business name or even made your first sale. But using an accountant at this early stage ensures you have a sound business plan and personal financial statement. An accountant can help you gain a clearer vision of the future of your business. This can help you chart a realistic set of objectives that you are more likely to meet or even exceed.
You’re in a growth or cost-cutting phase
Is your small business going boom or bust? When you face the moments, it’s important to budget for much-needed increases or reductions. An accountant can help you spend confidently during periods of growth and cut back during lean times. This way, you can recover from business setbacks in a strong position.
You have a complex tax return
There are a variety of scenarios that may make your record keeping requirements higher than that of the average taxpayer. An accountant can make sure your file a high-integrity tax return. This will also make sure you appease Uncle Sam while maximizing deductions and credits.
You’re selling a business
Parting with your business can be difficult. When you do sell it, you can hire an accountant to ease the complexity of the transaction. You can find specialized accountants who can assess the value of your business and get you a competitive price. These accountants can also set your financial statements in order so that you and the new owner have a hassle-free transfer of ownership.
MileIQ’s blog does not constitute professional tax advice. You should contact your own tax professional to discuss your situation.