Growing your small business can be one of the most fulfilling things. You have taken your idea and turned your passion into something people want. And seeing your small business grow can be a very exciting time.
However, it comes with challenges, especially if you choose to do many of the business tasks yourself. And while it’s great that you’ve started everything by yourself, you may find that you need help while your business expands. One of those areas might be your accounting.
So, how do you know when to hire an accountant for your small business? Here’s a guide on five signs that you need an accountant for your growing business and why this can benefit your small company.
Are you interested in bookkeeping and accounting services for your small business? Contact Financial Optics today to learn how your business can thrive with outsourced accounting!
What Are Signs It’s Time for an Accountant?
Have you noticed that you’re struggling to stay on top of your bookkeeping and accounting? This is a sure sign it’s time to get help. Poor bookkeeping can directly harm the overall health and growth of your business. If you’re unsure that it’s time to seek help, here are five ways to tell that it’s time to hire an accountant for your small business.
1. Accounting Is Taking Too Much Time
One of the important things to keep in mind when running your small business is how much time it’s taking you to do each task. If you’re producing your products or services yourself, you
should be tracking how long it takes you to finish that task. Similarly, it would help to consider how much time it takes to do your accounting.
For some small businesses, it may be easy at first to do all of the menial bookkeeping tasks as there are not that many entries to keep track of. However, as your business grows, there is more accounting work to do than providing your product or service – especially if you’ve hired on more staff members.
The time you’re pouring into your accounting can end up hindering your ability to provide quality services for your clients, hurting your business in the long run. So, you can consider hiring or outsourcing your accountant as it can help reduce the workload and allow you to focus on other aspects of your business.
2. Understanding Your Accounts is Difficult
Accounting can be a difficult thing to understand. Although everyone can learn how to do accounting, it may be harder for some people. Many factors go into your bookkeeping and interpreting your financial records to understand how your business is doing.
When you’ve chosen to do the accounting yourself, you need to learn how to properly complete all entries and understand a lot of accounting jargon. This can sometimes be difficult as you’ll have to take time to learn everything instead of dedicating it to your business. However, if someone else is completing your books, you can learn the basics to ensure everything is done right, but also let someone else do the menial task of data entry.
When you choose to outsource your accounting, you can avoid learning the ins and outs of accounting. But it also means that other people are looking at your accounts to help ensure everything follows the rules and regulations, so you don’t have to worry about making errors that an expert would have caught. On top of that, you’ll be able to use your accounting team to help identify how you can grow your business sustainably.
3. Not Using Financial Reporting to Understand Your Growth
One of the best things you can do for your small business is to utilize your financial reporting better to understand your business’s losses and successes. Starting your business may take a while before you can see a good profit margin. But as time continues, you’ll potentially be able to efficiently produce your products or services with lower costs with higher revenue coming in.
If you can complete the bookkeeping portion but are unsure how to evaluate your financial records properly, this can signify that it’s time to hire an accountant. There are many benefits to outsourcing your accounting, including talking with your accountant to understand better how you may save money.
Some small businesses will utilize CFO services to get a better deep dive into the finances of their business. This allows them to understand which investments are paying off and get an insight into their business’s future profitability.
Are you ready to connect with an accountant that can help your small business thrive? Contact Financial Optics today to learn more!
4. Drowning in Work During Tax Season
Tax season can be difficult for anyone, but small business taxes can be challenging if you’re unsure how to do them. This can be one of the most stressful times as you try to understand the nuances of tax laws, requirements, and regulations. However, when a person is in charge of ensuring the finances are in order, it can be easier to file your small business taxes.
It doesn’t take much for you to run into trouble if there has been a mistake on your taxes or books. And doing the bookkeeping yourself can sometimes make it easier for a mistake to happen and slip by unnoticed. When you have an accountant, they can ensure your taxes are being done correctly and prepare all the numbers and paperwork for tax season.
You won’t need to think about the stressful tax season. Instead, you continue focusing on your small business. So, if you’re not ready to tackle the big challenge of tax season, it’s a good idea to hire an accountant to help.
5. Focusing on Your Business Growth
When your business is growing, other factors begin to take priority. And while that’s expected, you can’t fall behind on your accounting. This is crucial for ensuring that your business is following all accounting rules and that you’re also making a profit.
When your small business begins to pick up traction, it’s time to buckle down and ensure that you’re providing your customers with the products or services they’re looking for. That means you must dedicate more time to the work you’re passionate about.
Hiring an accountant will allow you to focus on your growing business in several ways. You’ll have more time to focus on your work instead of accounting. And it allows you to gain financial insight into your business, so you’re more likely to learn how to grow your business sustainably.
Why Should You Choose Financial Optics?
Financial Optics is the right choice for your small business because we care about sustainably growing your business and have the expertise to help it thrive. With over 30 years of experience, we understand that running your business can sometimes be taxing and difficult. But with the right help, you can gain support in your small business journey.
Our accounting services are top-notch, and we work on your accounts daily to ensure everything is done correctly. We work with you so you can see your financial statements and make business decisions that can help you thrive. You can also utilize our CFO services, allowing you to gain further insight into your business and know what investments you should venture into. At Financial Optics, we care about your small business and what we can do to help you focus on the growth of your business. We are here for you if you’re ready to take your business to the next level.
Are you ready to hire an accountant for your small business? Schedule a free consultation with Financial Optics today and learn how we can help your business grow!