Some of the small businesses do not bother to higher an accountant. They think that they can do the accounts their selves using an app or an accounting software. So, why we need to spend money on hiring one?
We can understand that small business or a startup just want to cut its cost. It can use this money on other business operations. But an accountant is a must for a business. As a business owner, you need a business accountant as it can help cut down the costs of your business. But “how can you find cheap accountants for your business” and “when you need to hire one” are the question. In this article, we will answer all of your questions. We will tell you when you need to hire an accountant for your business.
When You Need an Accountant?
If you know when you need an accountant can help cut down half of the effort. Well, there is no time frame for hiring one but there are following signs that indicate you need one.
If you do Not Know About Accounting
Have you just started your business and you do not know anything about accounting? Then you just need to learn the basics of accounting. As your business grows, the financial statements will become more problematic and confusing. It is the right time to hire an accountant as soon as possible.
An accountant can help to compile the financial statement, file tax returns, financial strategy, and business plan. Moreover, it will teach you how to manage the finances of your business properly. These tips will avoid any mistakes and will also help cut down the cost of business processes.
Deciding on Company’s Legal Structure
Whenever someone wants to build a company; There are many ways to structure the business. You can go for LLC, partnership, sole proprietorship, corporation. It is a very important decision to make. For example, if you are a sole proprietor of a business. You will be considered as self-employed. In this way, you can cut down the taxes by deduction your living expenses.
Well, every legal structure for your company or business has its complications. If you have an accountant then you do not need to be an expert on this topic. You can discuss your business idea with the accountant and he or she will help you choose the right legal structure for your business.
Do Not Know About Taxes?
Owning a business does not make you a tax expert. Filing tax returns for business is not straight-forwarded. There are so many complications if you do not know about taxes. On the other hand, an accountant knows about taxes and all the rules. That is why; hiring the best accountant is the best option. It will make sure that you are filing your taxes correctly and paying the right amount of tax. Unable to file the tax returns properly can result in fines and penalties.
An expert knows about the right tax amount and credits. Moreover, it knows about the tax deductions you can take. It can help you save hundreds of dollars on every year’s taxes.
Business is growing Fast?
If your business is growing very rapidly? Then your accounts will become more complex. As the number of customers will increase, the accounts will become more complex. Because you need to increase the number of vendors and employees. It is the time that you just need to hire an accountant to keep track of your business finances. Moreover, it will help you smartly manage the money of the business. Getting more customers is useless if you do not know how to manage your business. So, if your revenue is increasing then you will get a hard time managing it. An accountant will look after the finances of your business and will highlight the areas where you can cut the cost.
There is no specific time when the official government will come for an audit. If you have an accountant in your company, then the process of auditing will become stress-free. It knows about the auditing process and how it works. Moreover, it will make sure that you have not violated any tax laws. If you are getting audited by the government officials, then hire an accountant in advance to guide you through the process.
When You Need A Loan
You also need one when you are applying for a business loan. A bank wants to make sure that your business is running well and you can return the money. The bank needs your financial documents for making any decision. An accountant will make sure that your finances are good and you are eligible for the loan.
Buy A Business or Sell A Business
Selling your business or buying one is a very tough decision. If you are going to buy then an accountant can help you provide a detailed financial report of the business. Moreover, it will help you find any red flag. It is necessary to evaluate the true value of the business before buying. To make sure that you are paying the right amount. Also, make sure that the company does not have any debt on its books.
But if you are going to sell your business then the accountant will make sure that your financial records are on track. Moreover, it will provide a detailed report to the buyers explaining the true potential of your business. It will also help you get the right price for your business. In short, it will make the selling process easier. Every person does hard work to establish a business. So, it is your right to get the right value in the process.
No matter, you are starting a new business or running an existing one. You need to hire an accountant to handle the financials. You may have the accounting skills but you cannot handle al the work alone. So, just hire an expert for this so you can focus on other things.