Although small business owners can handle almost every responsibility of their business, sometimes they may need professional assistance. For example, churches and small businesses that have ever needed help with their financial planning and accounting should consider hiring an accounting firm in Southlake, Texas, such as Dana McGuffin CPA. However, enterprises that use online accounting software may not have to recruit full-time financial advisors and accountants.
Instead, consider hiring services of an accountant per project or periodically. A professional accountant can offer advice, knowledge, and expertise concerning certain financial decisions. The following are signs that a small business needs to hire an accountant:
Initial Stages
Of course, an entrepreneur has to make a lot of decisions during the initial stages. The choice that an entrepreneur makes when opening their business will shape its future. The expertise of an accountant can help their small business realize its best financial options. The structure of a startup enterprise will determine its deposit and file taxes, and an accountant can assist in designing the formation of a company.
Taxes
Companies often lose millions of dollars for making mistakes on their taxes, and tax penalties can be costly for a startup. It makes sense for companies that aren’t sure where to start with their tax return to hire a qualified and experienced accountant. Their hired accountant will deposit and file taxes on their behalf and help in tax estimate. With an accountant, an enterprise runs less risk of overpaying or underpaying their government.
The Need to Formalize the Business
One reason small businesses create a formal plan is to make it easier for them to qualify for funds from investors and banks. A business plan can include financial forecasts and reports. Accountants are experts in creating formal business plans and can help a small business owner understand and present their financial statements.
The Need for Audit
Auditing usually exposes all the financial history of a company. You can be in trouble if an auditor raises a red flag after spotting grave bookkeeping mistakes on your financial statements. However, a professional accountant can help review and correct all your financial statements, check for missing information, reconcile accounts, and run reports to help trip audit triggers.
Business Growth
Whether your business sales are rising steadily or exploding overnight, a certified accountant can help as a small business continue to expand. A grown business translates to more spending and profits than before. Accountants leverage their expertise and knowledge to project how successful an enterprise will be so that owners can know how to spend their income. An accountant can also caution a startup enterprise about a purchase that can hurt its profits.
The trickiest part of running a successful enterprise is managing its finances. Companies are different, and none is guaranteed to succeed. That’s why most startups fail within their first five years. However, recent research has found that most businesses, including the stable ones, can fail due to poor financial management. As such, entrepreneurs should be on the radar of their enterprises to know when they need the services of a professional accountant.
