In the early stage of your business, it is not necessary to have an accountant in your business. Many business owners are capable enough to move forward without an accountant up to certain point. If you can handle a basic accounting software and have some knowledge about taxes you will be good to go in the initial stage. But as your business grows always keep an eye on following signs that indicate you need a professional accountant for your business. Because when your business grows you need the professional support from a person who is dedicated on keeping track of your financials and taxes.
Let us take a look at 9 major signs that may indicate you need help from an outside person to handle your company financials.
- You are not familiar with accounting
If this is the case it is vital to have a support from an accountant since the beginning of your business. It is important to understand your financial situation even it’s a small business. After all what matters is you can have a profitable business at the end. If you cannot afford to hire a full-time accountant, you can always outsource your accounting need for affordable price.
- You don’t know anything about taxes
Tax is an essential part of any business. It is important to have the basic understanding about your tax obligations. An accountant can advise you early on so that you can comply with all tax regulations.
- Bookkeeping takes you away from more important tasks
Being a business owner is not a piece of cake as it seems. As the owner you have to overlook all aspects of the business not only accounting. You need to grow your business, attract more customers, build your team etc. Therefore, it is essential to make time for all these activities while running the business. Accounting may take more of your time and you may end up spending your valuable time on one task only. So, it is always worth the cost of hiring an accountant or outsource your accounting needs to third party.
- You have experienced rapid growth
As a business you are always looking to grow up your business in to successful venture. When your business is growing, you will face new demands in the market. When you are in this phase you will have to hire more staff, more inventory, more internal system and a good management. Here, you will have more numbers in your books and it will always be good to have an accountant to keep your financial in line.
- Revenue is increasing but profit isn’t
If you have more sales than ever but not that much of profit, you’ll surely need guidance from an accountant. Accountants can have an objective view at your financials and suggest necessary changes that need to be done in your business.
- You want to expand into a different state
If you are looking forward to expand your business in a different state, an accountant can walk you through all regional rules and regulations that you are not familiar with. An accountant can make sure you are compliant with sales, income, or payroll tax-reporting requirements.
- Your investors expect professional financial reports
If your investors require professional financial reports or you are looking for new investors, either way an accountant can create detailed accurate reports that keep your investors happy. Even if you are looking for applying a loan your company’s financial history will be a key part of your loan application.
- You are planning to buy or sell property or business
If you are unsure of making these kinds of decisions, an accountant can help you with giving the best solution. An accountant can walk you through the process and make sure the best decision is made such as whether to buy or lease or how to finance a big purchase. It always good to have a second opinion on such things and accountant will assess your current financial position and determine how to structure the transactions so that you are not hit with overwhelming taxes.
- You are facing an audit
Tax audits are always stressful. An accountant will help your way through paper works and it will always save your precious time and money.
There are a number of signs that it might be time for you to bring on an accountant for your business. However, if you’re at a point where you’re not able to hire someone full-time or on retainer, it’s still a good idea to outsource an accountant.
If you are looking for an affordable accounting partner for your business, Beyond Numbers can help you with all your accounting needs.
Read more; https://beyondnumbers.ae/accounting-challenges-faced-by-corporates