Small business ownership is the lifeblood of the economy, but that comes with the blood, sweat, and tears of those individuals. Running a business is a challenging but rewarding task and is not for the faint of heart. Those bold entrepreneurs who take the risk and expend their efforts into their business should keep in mind these top five reasons a small business owner should hire an accountant.
1. Your job is to focus on the business of running a business.
According to Appletree Business Services, “One of the most obvious, yet undervalued, reasons to hire an accountant is simply because you have better things to be doing.” The brass tax of payroll, compliance, and other complicated tasks are easily delegated to a professional who specializes in the issues critical to your business. There are many other professionals you wouldn’t hesitate to hire because of their training and expertise, and an accountant should be no different.
2. You’ve grown, shrunk, or you want to grow.
Changes in growth, whether expansion of contraction, have serious implications in your financial obligations, responsibilities, and liabilities. If your business if growing—great! But that indicates a situation where your precious time resources may best be spent keeping up that momentum. If your business has shrunk you may have even more reason to be spending your valuable time capital on righting the ship instead of muddling through tasks you can delegate. Also important to consider is whether your business growth will take you outside of your established area; regulations and codes can vary by state and even by municipality, and the help of a professional can make it much easier to wade those muddy waters.
3. Your profits are stagnant.
Far from an indication that your business is not succeeding, stagnant profits in the presence of increased revenue may indicate areas that are inefficient or redundant. A proper accounting done by a professional can help you find those gaps and offer solutions to remedy the problem. Your job is to run the business, not dig through financial statements with a find-toothed comb, that job is best left to a professional accountant.
4. The dreaded audit.
Tax code is complicated, even for professionals. The tax code is almost constantly changing and as a result the implications for your business. If you find yourself in the unenviable position of being audited, having a professional in your corner to assist you in the audit process is invaluable. An audit is a serious proceeding and can be extremely stressful for the taxpayer, but with the guidance of a professional the process can be completed without disrupting the daily operations of your business.
5. You’re considering buying or selling a business.
The implications for your financial picture can be drastic when you are considering buying or selling a business. It bears repeating—the tax code is complicated. Without the advice and guidance of a professional you may find yourself unaware of substantial monetary burdens that accompany the purchase or sale of a business. Even if you are not seeking to sell the entire business and only want to sell a portion the tax and financial consequences can be difficult to ascertain without a trained eye assisting through the process.
Owning your own business is a rewarding experience filled with challenges and triumphs. Most small business owners are familiar with assuming vastly different roles in keeping their livelihood afloat, including bookkeeping tasks. However, it is wise to take the time to consider these five situations when making a decision about hiring an accounting professional; you don’t want to let an accounting setback derail your entire business.
