Hiring an accountant gets companies unstuck and frees them up to thrive.
The symptoms of a company that needs accounting help is actually a company that is doing well in many other ways.
It can be difficult for small business owners to discern when they need professional expertise and services such as bookkeeping because, well, they are busy running their small businesses - trying to wear many hats at once and keep the ship afloat. But even if you are an owner who has kept a tight rein on costs and tax-deduction opportunities, for example, you may miss some signs that you need bookkeeping help.
The time to wave the white flag and get help is basically when the cost of NOT having a professional bookkeeper outweighs the cost of hiring one, even on a project-by-project basis.
Here are a few situations where outsourcing an expert bookkeeper is worth every penny:
Your company's revenue is up, but profits are not. This is a sign that something is amiss in your company's financial picture. Let an expert help you analyze your profit-and-loss statement to find where you can generate more revenue, decrease costs, or both.
Your company is growing rapidly. Growth is great news, but only when done strategically, with strong financial leadership. Otherwise, there's no solid infrastructure to meet that added customer demand. A skilled accountant as part of your team will aid you in adding new staff; internal systems, like software; equipment; locations; and inventory. All these elements involve documentation and number crunching.
Bookkeeping is sucking up too much of your time. Sure, you can do your own bookkeeping. You may even not mind doing it. But does it make financial sense? As your company grows larger, your time will become more valuable.
Add up the time you spend on business accounting tasks each week. Then factor in the amount your time is worth per hour. Add in the fact that you are also losing out on expert advice by not hiring a professional accountant, and the case will likely be clear - it's an area of business best outsourced. This way, you can focus on bigger-picture matters in your organization - some of which your accountant works on with you.
Out-of-state expansion is in your future. Each state has new tax rules and regulations. An accountant will ensure you are up to date on all requirements when it comes to sales, income, and payroll-tax reporting. Where you may be familiar with the laws in your state, it helps to have a professional guide you in unfamiliar territory.
Your company is at a phase where professional financial reporting is crucial. Maybe you're preparing to seek loans or investors. Loan applications and investor proposals need all pieces of documentation. Then, for investors, financial reports need to be provided on an ongoing basis.
Your company is looking at real estate or a large, expensive piece of machinery for purchase. The financing options can be confusing and overwhelming. An expert accountant can offer guidance on whether to buy or lease, and more importantly, your budget on how much you should spend.
If your company has even one of the symptoms above, hiring a bookkeeping and tax expert will be money well spent in how it benefits your business, you and your employees.