When you first started your business, bookkeeping and accounting were probably straightforward and easy. There was little else necessary than logging your income and expenses into a software program. But as a business grows, the number of transactions to track will increase, making it harder and time consuming to track. Losing track of your finances and transactions can leave you with financial and technical questions you can’t answer.
This lack of knowledge can lead you into legal issues and at the risk of an audit. Today we’re going to discuss the 9 signs you need a business accountant.
1: You Don’t Have Time for Important Tasks
You started your business because you had a dream, a passion, and a vision. However, if you are starting to find yourself spending more time bookkeeping and not enough time working on what you enjoy about your business, then it is time to get a professional accountant. This way, you can focus on growing your business and bringing in new opportunities. After all, if you wanted to work as an accountant, you would have pursued that career.
2: Your Business Has Grown and You Need a Business Accountant
Congratulations on growing your business! While it might be frustrating to find that your business has grown beyond your capacity to manage its financial aspects, it is a great sign that your business is healthy and successful! Once you start to increase revenue and expand, financial obligations increase. There are more customers to deal with, more equipment to invest in, payroll to consider, and vendors to pay. Your tax requirements will also change, which means things get complicated, quickly!
3: You Are Bringing in More Money but Not Seeing the Profits
If you know you’re bringing in money but not seeing the profits, this is a serious sign. Ignoring it can be a huge mistake for your business. There are several accounting and bookkeeping mistakes that can cause an increase in revenues but not lead to profitability. This is why a seasoned business accountant is the one best suited to sorting out your cashflow issue. They can quickly assess the situation and suggest adjustments to put you on the right path.
4: Your Accounting Skills Can’t Keep Up with Your Business
When you first started your business, accounting was probably easy. You didn’t need to worry about anything other than income and expenses. But as time goes on, you might find yourself having to read and prepare financial statements. Clients may want a report prepared that is beyond your capabilities. If you’re encountering more and more terms you’re not familiar with, you might find yourself at a disadvantage. This is the time to bring in business accountant.
5: You Feel Vulnerable at Tax Time
Tax requirements can be difficult to navigate and quickly become overwhelming. Making mistakes in these stages can be costly and lead to harsh penalties. To avoid penalties and ensure you take advantage of possible deductions, you will need to work with an accountant. An accountant understands tax guidelines as part of their profession, so it is important to take advantage of their extensive knowledge.
6: You Need a Business Accountant to Prepare Reports for Investors
Whether your investors are individuals or institutions that are either invested in or seeking investment in your business, they may request financial reports. This provides them with information about the health of your business, so they feel comfortable investing, or with their investment. Having an accountant who can prepare this document not only assists your with the task but also pre-empts any issues with improper practice or compliance.
7: Your Industry has Specific Regulatory Requirements
Growing a business is difficult enough. Adding on government compliance and regulatory requirements for your industry just adds another layer of difficulty. A business accountant can help you shoulder this burden by preparing documents, keeping records, and fulfilling obligations in an appropriate and timely fashion.
8: You Are Being Audited and Need a Business Accountant
Nothing is more anxiety inducing than receiving an audit notice. However, a professional accountant can quickly reduce these fears. They can go through records, assess any issues, and help you prepare the necessary documents.
9: You Want to Expand or Sell Your Business – or Property
Whether you are looking to expand your business or sell it, this can lead to tax ramifications and unnecessary expenses if everything is not structured and accounted for. This is the same if you’re trying to sell or buy business related property. A business accountant can guide you through the process, giving your options, and the pros and cons of your decisions.
Has your business grown? Do you need help with your finances and staying compliant? Contact the experts at Siragusa today! Let us help you grow your business to greatness, today!