When growing a business, you learn when you need to hire a professional rather than trying to accomplish a task yourself. One of those tasks for business owners is knowing when to hire an accountant.
When Building Your Business Structure
As a new business owner, hiring an accountant can seem premature. However, you’ll need the financial advice that comes from a professional as you navigate the waters of deciding on a business structure for your company.
Accountants and bookkeepers will be able to give you the details about each business entity type and help you understand which one will be best for you and your business in the long run. They will also help you manage your money as you’re beginning to establish yourself. It’s highly recommended to sit down with an accountant and create a game plan for the first year of your business.
When Things Start Getting Complicated
As you start a new business, things can seem and appear simple in the beginning. However, it doesn’t take long before you find that you will likely need help in handling your finances and other aspects of your business. An accountant can assist you in moving from just a simple side hustle to a more formed, growing, and complex company.
As you look to hire an accountant, don’t think that it’s a statement about your ability to juggle it all, rather, think of it as a reason to celebrate. As in the case of any growing business, there comes a time when you have to hire help in order to fast track to the next level.
When Dealing with the Government
When “IRS” is heard, it sends shivers down the spine and pits to everyone’s stomachs. Hiring an accountant when you have to work with the government, and even before you have to, can help to give you peace of mind. Accountants are good for more than just keeping you away from an audit or managing one, accountants can help:
- Keep you up to date with tax laws
- Keep your company’s status updated in the government’s company register
- Handle the payroll to make sure everything is documented and correct
- File all legal paperwork and compliance documents
When You’re Applying for a Loan or Looking for Investors
It takes money to make money, and that type of capital comes from either a bank loan or an investor. When applying for a loan or an investment, investors and banks like to see that they will be getting a return on what they’ve given. Accountants can assist in preparing the paperwork and pulling the records necessary to get started.