7 Signs Your Business Should Hire an Outsourced Accountant
More than 35 percent of business owners across all industries feel that dealing with payroll and routine accounting processes is one of the worst parts of running a business. If you’re one of them, you know that dealing with taxes takes up a lot of your time.
You have better things to do that can help you grow your business more aggressively. But if you’re trying to stick to a budget, the temptation to handle everything yourself is very real.
While it’s possible to manage your own accounting processes at first, there will come a time when hiring an outsourced accountant is your best option. Watch for these key signs that it’s time to outsource as your business grows and changes.
Your Company Is Growing Rapidly
Growing your brand is always a good goal. It means you’ll be able to expand your product offerings, hire more employees, and increase your profits from year to year.
That said, it also means that your accounting and bookkeeping processes will need to change. You’ll have more tasks to handle at any given time and may not be able to keep up with those changes as they happen.
Hiring an accountant to help you streamline the process will allow you to focus on building growth and creating more sustainable business practices. They understand the different challenges businesses face as they grow and will be able to implement changes to help reduce stress and improve your finances in the long run.
You’re Worried About Accuracy
As a business owner, you’re required to make quarterly tax payments and withhold taxes from your employees’ paychecks. This can be difficult when your finances change from month to month.
The more accurate you can be, the less likely it is that your business will run into surprises when you file your taxes at the end of the year.
If you’re worried about your ability to be accurate, hiring a small business accountant will help eliminate that concern. They specialize in taxes and will do everything they can to make sure your statements and filings are as accurate as possible.
Even better, they understand how to factor in your business’s growth and profit increases, so you won’t have a surprise bill due at the end of the year.
Accounting Is Taking Too Much Time
When you first started your business, you likely managed your company’s payroll and accounting process on your own. When the business is small and your profits aren’t growing, this is relatively simple. You still had enough time on your hands to focus on other tasks.
However, as your business grows, your accounting processes will become more complex. The more complex they are, the more time you’ll have to devote to your company’s accounting efforts.
If you’re spending too much time on those tasks, you won’t be as in-touch with how your company is operating.
Hiring an accountant when things feel too stressful or you think you’re spending too much time in the back office and not interacting with customers is a smart investment. It will allow you to focus on your business rather than spending hours crunching numbers.
The Business Isn’t Growing Fast Enough
Growing your business takes time but it also takes a deep understanding of what works within your industry. If you’re not sure where to start, it’s easy to watch your plans for growth stagnate.
Making the decision to hire an accountant is a great way to speed up your company’s growth. Professional accountants know how to implement new strategies without taking a toll on your operating budget. They’ll be able to work with you to help you reach your goals and improve your growth trajectory both now and in the future.
Sticking to Your Budget Is Proving Difficult
The key to every successful business lies in sticking to an operating budget every month. Since your business is dynamic and cash flow can change from day to day, sticking to that budget isn’t always easy.
When you work with an outsourced accounting expert, they’ll look at your expenses and budget with fresh eyes. They’ll be able to identify changes that you can make to improve the cash flow that you otherwise might miss.
If you haven’t established a firm budget already, they’ll be able to look at your finances and help you create one that you can use for months to come.
You Want to Protect Yourself Against an Audit
Errors on your tax return can result in serious problems for your business. At best, you risk paying penalties and fines to the government. At worst, you risk facing a full audit of your business’s finances.
If you’re worried about a future audit, the best thing you can do is work with a professional small business accountant. They’ll file your taxes more accurately in the first place. However, if there are any errors on your return, they’ll be able to work with the government on your behalf to correct the issue quickly.
You’re Thinking of Retirement
There will come a time that you’ll want to exit the workforce and retire permanently. Doing so takes a lot of planning, both for your personal finances and your business’s future.
If you’re approaching retirement age and plan to keep your business’s doors open, hiring an accountant can make the transition easier. They’ll be able to set up protocols for your new managerial team to keep the business running smoothly.
Are You Ready to Hire an Outsourced Accountant?
If you’re feeling stressed out by your company’s accounting needs or notice any of these telltale signs, don’t panic. Instead, hire an outsourced accountant as soon as you can.
The sooner you do, the easier it will be to get your business’s finances back on track.
Just make sure to choose an accountant that’s familiar with businesses like yours. This way, you’ll know that they’ll be fully equipped to help you simplify your operation and reach your goals.
Hiring an accountant is just one way to improve your business’s finances. Check out our latest posts for more tips to help you take control of your operation once and for all.