We talk with clients everyday about their business and we love it. As accountants, we spend a lot of time with the books and we love the numbers and details, but we get that not everyone does.
Part of growing your business is knowing when to pull the lever to hire a professional rather than continue to DIY things yourself.
So when is the right time to hire an accountant? We’re glad you asked.
When You’re Deciding on Your Business Structure
Hiring an accountant when you’re first starting out might seem a little premature. But you’ll want the financial advice and wisdom that comes from a seasoned professional as you figure out the type of business structure, or entity, that you need to set up for you business.
An accountant will be able to provide you with the ins and outs of each business entity type and help you formulate which one will be best for you and your company in the long run. Additionally, they’ll be able to help you manage your money as you set out to establish yourself. If numbers aren’t your thing, we highly recommend at least sitting down with an accountant for an hour or two to hash out the starting details and a gameplan for your first year or so in business. Then at that point, you can reassess to see if outsourcing your finances to an accountant and bookkeeper is a better fit.
When Things Get Complex & You’re Ready to Delegate
So you’ve DIY’ed it so far and it’s been just fine. As you start to grow your biz and things become more complex you might find that you lack the time to keep a handle on your finances along with all the other aspects of your business.
Hiring an accountant as you enter this more complex stage is a great idea. They can help you move from a side hustle or brand new biz to a more complex one that’s investing in growth and the future. Don’t feel like it’s a statement about your ability to juggle it all, rather celebrate your success and hire that accountant to help you fast track to the next level.
When You Have To Deal With The Government
Everyone, and we mean everyone, feels that pit in their stomach when they hear IRS. Hiring an accountant when you have to work with the government, and even before, helps gives you peace of mind – and accountants are good for more than just managing an audit or keeping you safe from one. Accountants should also be able to help you with:
- keeping you up to date with the most recent tax law
- keep your company’s status updated in the gov’s company register
- handle your payroll and ensure that dealings with employees are documented and done correctly
- complete and file all legal paperwork and compliance documents for your business
When You’re Applying for a Business Loan or Looking for Investors
So your business is growing and you’re looking to expand even further. But it takes money to make money and the type of capital you’re looking for is going to have to come from a bank loan or an investor.
Banks and investors like to see that they’re going to get a good return on the money they loan out, and an accountant will be able to showcase that your company is a good bet. Accountants can help you prepare the paperwork for the loan, choose the right type of loan, and even pull together the records that you’ll need to show how impressive your business is so that you’re a shoe-in for getting that loan.
Have additional questions about hiring an accountant? We’d love to chat.