Bookkeepers and accountants are as essential to the business as its operating employees. You need someone to manage your money as your business grows. This is where bookkeepers and accountants come in. If you are still lost, here are 7 reasons why successful business and you should hire bookkeepers and accountants.
1.) They aren’t familiar with accounting.
If financial statements confuse you, you have a hard time creating reports, or you are lost when it comes to accounting terms, you likely need to hire an accountant — at least initially — to coach you in all things financial. An accountant can talk to you in straight terms, weed through terminology, and teach you how to manage your own finances. In addition, you don’t want to miss the key information or make mistakes early that could cost you down the road. An accountant can start you and your business off on the right track.
2.) Revenue is increasing but profit isn’t.
If you are selling more than ever, but you aren’t seeing a higher profit, an accountant can take an objective look at your overhead costs and point out areas where you can cut costs or make other adjustments to increase your profit margins.
3.) Your investors expect professional financial reports.
Accountants can create detailed, accurate reports that keep your investors happy and allow you to focus on tasks like growing the business. Additionally, if you are looking for a loan or funding from an investor, you will need to present a polished business plan. An accountant can help you flesh out the financial portion of your plan, ensuring that you’ve thought of everything.
4.) You have experienced rapid growth.
Making more money is a great thing. However, as you expand, you will also serve more customers, hire more employees, take on additional vendors, and more. All of those things require more paperwork and number crunching, and it could rapidly become impossible for you to manage.
5.) Bookkeeping takes you away from more important tasks.
Perhaps you have some working knowledge of accounting, but managing your books is preventing you from accomplishing tasks that could directly grow your business (for example, acquiring new clients or moving into new markets) or managing your business effectively (such as dealing with performance issues or troubleshooting service problems). Hire an accountant so you can focus on winning more business, innovating, building your team, and other development activities.
6.) You’re facing an audit.
An accountant will guide you through this messy process by preparing you to manage the audit or by working with the IRS on your behalf. An accountant can save your precious time and money, and offer guidance during a particularly stressful time.
7.) You’re planning to buy or sell property – or sell your business.
If you want to grow through an acquisition, sell off parts of the business, or sell the entire business, an accountant can walk you through the process and determine how to structure the transaction so that you aren’t hit with overwhelming taxes.