Hiring an accountant for your small business is a huge decision. As a small business owner, its likely you try to get by without help whenever possible. To run a successful small business, you need to decide what to do on your own and when to pay a professional. However, a time it may not make sense to cut a corner is when deciding whether to hire an accountant. Similar to the way you offer your clients more than they could get alone, a small business accountant can often give you benefits far outweighing the cost.
When should I hire an accountant for my small business?
- You are not well-educated about business taxes. Most business owners are not trained in tax accounting. Can you answer questions like: What is CAT tax? Who is RITA? Where do I pay my taxes? What is nexus? I have a payroll service, I don’t need to worry about anything but my year end taxes, right?
If these questions aren’t easy for you to answer, you should consult an accountant.
- You aren’t familiar with accounting. What is deductible and what isn’t is complicated. Tax law doesn’t always make logical sense and changes from year to year. You could really be cheating yourself out of deductions which would be additional money in your pocket. In addition, there may be special incentive programs that your accountant is aware of that you aren’t. Hiring an accountant for your small business could really benefit you. Finally, in the event of an audit, its much better to have the peace of mind that everything has been done correctly and that you have a qualified professional to guide you along the way. And did you know that Cheri is licensed as an EA? That means if you do experience an audit, she can represent you in front of the IRA.
- You don’t have time to do your own bookkeeping. If you find yourself stressed every time you put your checkbook and information together for tax returns, you may be surprised to know bookkeeping services are affordable. The average fee for all monthly bookkeeping and payroll at our firm is $250 per month and that includes year-end tax returns. That is just about $8 per day for monthly financial statements, a real live accountant that can answer your questions, and prepare a business tax return for you. For bookkeeping services only, with no payroll, the average fee at Forward Focus Accounting is $150 – $175. Think of it this way – in the time you currently spend each month for bookkeeping, could you make an additional $250 for your business? Add in the stress of not knowing whether you are doing it correctly and the value becomes even greater.
- Your business is growing quickly. While rapid growth is exciting, it is also one of the leading causes of business failure. In a 2015 study of the annual Inc Magazine list of the 5000 fastest growing companies, two-thirds of these failed within 5 years. Rapid growth requires good cash flow. Do you know when it is time to get a line of credit? Do you have a good foundation and practices and procedures in place to allow you to manage the rapid growth? This is extremely important. Working with an accountant can help you plan and react appropriately.
- Revenue is increasing but your profits aren’t. Or your P & L says you are making money, you are paying out a lot in taxes, but can’t take your own payroll check. An accountant can help you explain this and prepare you for your year-end taxes.
These are all reasons to hire an accountant for your small business According to the Small Business Administration, there are about 30 million small businesses in the United States. Most of the owners of these businesses are experts in something other than accounting. You owe it to yourself and the success of your company to consider contacting an accountant today. Find out more about our small business accounting services by clicking here. Cheri and her team look forward to meeting you.