As a business owner, up until this point, you may have managed your finances successfully. Even if you don’t have much financial knowledge or experience.
However, as your business and revenue grow, managing your financials may become a task you don’t have the time or knowledge to manage. Specifically, when it comes avoiding legal and compliance issues, an accountant can be your most valuable asset.
If you're not sure if you need the help of an accountant, look out for these 4 signs:
- You aren’t familiar with accounting.
If financial statements confuse you, you have a hard time creating reports, or you are lost when it comes to accounting terms, you likely need outside help -- at least initially -- to coach you in all things financial. An accountant can talk to you in straight terms, weed through terminology, and teach you how to manage your own finances. In addition, you don’t want to miss key information or make mistakes early on that could cost you down the road. An accountant can start you and your business off on the right track.
- You don’t know anything about taxes.
If you fail to pay the right taxes for your business type and industry, you will likely be hit with penalties and fines. An accountant can advise you early on so that you can comply with all tax regulations. More importantly, an accountant can inform you of tax credits and deductions you can take, and predict the taxes you’ll owe so that you don’t come up short when the taxman comes knocking.
- Bookkeeping takes you away from more important things.
Perhaps you have some working knowledge of accounting, but managing your books is preventing you from accomplishing tasks that could directly grow your business (for example, acquiring new clients or moving into new markets) or managing your business effectively (such as dealing with performance issues or troubleshooting service problems). Hire an accountant so you can focus on winning more business, innovating, building your team, and other development activities.
- You have experienced rapid growth.
Making more money is a great thing. However, as you expand, you will also serve more customers, hire more employees, take on additional vendors, and more. All of those things require more paperwork and number crunching, and it could quickly become impossible for you to manage.
Tune in next week for another 4 warning signs you may be in need of an accountant, and if any one of the above ring true to you then please don’t hesitate to contact us on 0132 430 9018 and we can have a chat about how we can help.