Hiring an accountant is a sign that your business is stepping up and growing. However, it’s difficult to determine when exactly you need an accountant, so here are five signs to look out for.
You’re spending too much time on your finances
Spending 2-3 hours each week to manage your finances isn’t much, but if you’re forced to spend a large chunk of your time on it, then it may be more time-efficient to hire an accountant. Choosing the right firm would help you to pass those tasks over to somebody with the know-how, it will allow you to focus on other jobs which will in turn allow you to be more proactive within your business. If, for example, you have raised the funds for your business through venture capital, you may need the services of a vc accounting firm to help you manage your finances properly and be sure that you are able to report back to your investors with the figures they will need to see.
You’ve made mistakes in the past regarding your taxes
Tax-related mistakes can be devastating for a business, and missing your tax deadline is usually a big issue that cannot be ignored. We suggest hiring an accountant if you’re worried about your tax responsibilities.
You’ve got better things to focus on
If you’re actively involved in developing or marketing your products and services, it’s important to consider freeing up some spare time by hiring an accountant.
You’re growing your team
If you’re deciding on new team members to hire, an accountant might be worth considering to make your business more productive.
Your business is getting larger
Be it expanding into new markets or developing new products, a growing business is going to require a lot of maintenance which means less time to spend on accounting. This is where an accountant can help make your business more efficient.
Luckily, even if you’re not quite ready to hire an accountant, there are plenty of excellent tools available to help you manage your finances on your own. If you’re willing to spend a few hours each week (depending on the size of your business) then we suggest using some of the digital tools mentioned below that could help you manage your financial situation.
Infographic: University of Alabama Birmingham
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