6 Clues Your Small Business Needs Accounting Help
As a small business owner, you’re likely blessed with vision, drive, and a valuable product or service line for consumers. In a perfect world, that should be all you need to create a successful business.
But alas — money makes the world go ‘round. And bookkeeping, taxes, and financial documents aren’t always intuitive to the intrepid business owner. Unless you’re also a CPA (in which case, feel free to skip this article!), taking care of your accounting needs can be frustrating and expensive, to say the least.
Up until now, you may have been keeping your head above water, financially speaking. But messing up tax documentation or bookkeeping can be an extremely costly mistake. Is there a clear-cut line as to when you should start outsourcing to a professional accountant or bookkeeper? Not always. That’s why we’ve compiled a list of (increasingly urgent) indicators that it's time to hire a financial expert to give you a hand.
1. You’re in planning mode for your business.
Just starting your small business? If you don’t have access to the latest accounting software, you’re missing out on financial projections. If you’re missing out on financial projections, you’ll be writing a business plan with incomplete data. And that’s not smart. When you’re hoping to appeal to investors with a polished and clear-sighted plan, it may be time to enlist the expertise of an accountant you trust.
Of course, creating your business takes more than a written plan. You’ll need to ensure your business:
- Is aware of and compliant with all reporting requirements
- Has all necessary licenses, and
- Has been set up with a carefully thought-out entity structure (s-corp, c-corp, etc.).
This isn’t an exhaustive list, so do yourself a favor and hire a financial expert to help you check off any and all to-do items without the headache!
2. Your business is growing and you need accounting support!
You’re growing…congratulations! Don’t let administrative tasks ruin your momentum. You only have so many hours in a day, and those hours should be spent on tasks that contribute to the continued growth of your business: increasing revenue, managing projects, and connecting with customers.
If you’re spending time and energy on accounting reports, you’re missing out on valuable opportunities to further your business goals. When you leave accounting to the accountants, you’re free to focus on scaling your business.
3. Your records are starting to pile up.
If your records are literally starting to pile up on your desk or in a filing cabinet, it’s time to move towards a paperless future with accounting software technology. This software will help you save time and become more organized, but that doesn’t mean it’s easy to operate.
If you’re unfamiliar, these operating systems can be complicated to work with. Luckily, there’s no need for you to go to the trouble. Hire an expert to reap the benefits without any additional stress.
Even if you’ve gone digital and feel that you’ve kept detailed records, you could be missing out on ways to save money. Worse yet, you might be leaving anomalies in your data unaccounted for. It’s always worth it to hire an expert.
4. Accounting activities are becoming too time (and money!) consuming.
Time is money, especially if you’ve hired an in-house accountant. For their time and expertise, you’ll have to spend money on wages, vacation, benefits, and overhead costs. You also must consider the costs for training each in-house employee. For a smaller business, contracting with an outside accounting/bookkeeping firm is almost always going to be the more cost-effective option.
You might feel uneasy about having your financial information travel outside of your office. While that’s an understandable concern, know that your data has never been more safe with today’s accounting software technology. Hire a team of reputable financial experts to cut costs and keep your information secure.
5. You’re experiencing delays in payroll.
There should never (ever!) be a delay in payroll. Your employees are counting on that paycheck delivered in a timely manner. If you have ever experienced a delay because your sole accountant got sick or took a vacation, it’s time to start outsourcing help with your finances.
When you hire an outside accounting team, you’ll have peace of mind knowing that your employees are always taken care of.
6. You’ve been audited.
You’ve been audited. Those are three words no one wants to hear, but it’s something that can happen. You certainly want an accountant on your side to expedite the process and make it as pain-free as possible.
An even better move? Hire an accountant before an audit ever happens. That way, you don’t ever have to be scared of the word audit. They’ll already have done all the work beforehand in maintaining your books and staying up to date with any changes in small business tax laws.
The most difficult part of hiring an outside accounting firm is giving up control of your financial records. It’s vital that you take the time to choose financial experts you can trust. Make your search easier by reaching out to KYN Accounting today! No matter where you’re at in your small business journey, you’ll be in good hands with our team.
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