When Should Your Business Hire an Accountant?
Companies are hiring accountants at record rates. To that end, in 2017 alone, over 1.24 million people were working for businesses as an accountant or financial auditor.
That number is set to grow to 1.44 million by 2022.
The volume of accountants working for American businesses sheds light on the fact that more companies are finding that bringing financial experts onto their team is a key piece to their continued growth.
So when should you consider hiring an accountant for your business?
The answer may be sooner than you think.
Our team at Scrubbed have put together this list of signs that your company may be ready to hire an accountant.
1) You're Ready to Delegate
Managing a business can be an involved process. This is especially true during a company's startup phase where owners need to wear a lot of hats to keep things running.
It's important to note though that in order to grow, a company needs to start defining roles and delegating tasks. As a matter of fact, over half of business owners feel that they could grow by 20% by delegating just 10% of the tasks on their plate.
That's because time is an incredibly valuable commodity when it comes to scaling your business.
Think of all of the time you spend looking over your company's financial health. Maybe you're pouring over receipts, expense reports, excel sheets, etc.
If you could remove yourself from that process completely, what could you do with that time?
You could chase down client leads, network, innovate and more.
If you're ready to start delegating your bookkeeping so you can invest yourself in the areas where you can have the highest impact, consider hiring an accountant.
2) You're Not Sure What to Do When Reviewing Your Finances
Keeping track of your finances is important for a variety of reasons. One of the main ones is that they can clearly tell you what course of action needs to be taken.
Is your payroll too high? Are your expenses outweighing your income? Do you have recurring issues with delinquent invoices?
Being able to look at numbers and understand the story they're telling you should inform the business decisions you're making. If when reviewing numbers you feel like you're not getting actionable insight, you should get an accountant.
Accountants are uniquely trained in reading into the intel numbers give and can quickly summarize your situation. That summary will enable you to change the course of your company to cut costs, boost income and scale.
3) You Need Help Writing a Sound Business Plan
This is particularity true for small businesses seeking external funding. If you're trying to put together a business plan that makes financial sense and will attract investors, you should bring on a small business accountant.
Your accountant can be instrumental in helping you build out your financial projections. Also, getting the perspective of an accounting professional when you're building the foundation for your company will help set you up for success early.
4) You're Confused by Taxes
For people transitioning from being employed to owning a business, tax implications can be downright scary. Self-employment taxes, itemizing expenses, understanding what income is taxable and what isn't...
If you find yourself spending a lot of time trying to research and stay on top of your tax obligations as a business owner, good accountants can relieve you of that burden.
Accountants will make sure you're operating in a way that keeps your tax situation as simple as possible. They can advise on how to take action to reduce your overall tax burden.
Accountants will also make sure you don't miss important quarterly tax due dates which will help you avoid potential penalties the IRS may pit against you.
5) You Don't Want to Be Surprised
Financial issues can crop up in a business at any time. Being able to manage unexpected burdens is critical to your company's ability to stay afloat.
To that end, an accountant has you covered.
Not only are accountants excellent at tracking your income and expenses, they're also well versed in the unique needs of your industry and can act as an advisor to ensure you can withstand adversity.
Say you own a trucking company and a portion of your fleet has been put out of service due to a fire at the lot they were parked at. Do you have cash flow available to be able to temporarily rent out trucks to service clients while insurance claims are pending?
Your accountant can not only answer that question for you but help you set up contingency funds to make sure that you're able to operate amidst financial surprises like the one outlined above.
The bottom line, your accountant is as much an advisor as they are a bookkeeper. You'll be able to lean on them to help you be set up financially to manage the ups and downs of business ownership.
As your business grows so will your financial complications. Staying on top of all of the implications your business' finances carries with it may keep you from focusing on the areas of your company that need your attention.
If you get an accountant, you can circumvent getting buried in numbers and set your company up to scale in a manageable, consistent fashion.
If you feel that it's time for your company to hire an accountant, look no further than our team at Scrubbed.
Scrubbed is a full-service accounting and financial audit firm that operates in the cloud. We give businesses all of the benefits of an in-house accounting team at a fraction of the cost.