As a small business owner, you’re trying to cut costs and increase profits. Perhaps you’re doing your own accounting, outsourcing work, and creating your own invoices. As your business grows and its needs become more complex, these tasks become more and more challenging.
According to a survey, 40% of small businesses spend more than 80 hours on tax preparation each year. That’s a lot of time that they could use in a different way. You could focus on customer acquisition, expand your operations, or improve your products.
Luckily, you can always hire an accountant to handle payroll, tax preparation, bookkeeping, and other tasks. This will not only free up your time but also help you avoid costly mistakes that may hurt your revenue — and your reputation.
If you’re asking yourself “Do I need an accountant?” read on. Here are three signs that it’s time to hire a professional to manage your finances.
Bookkeeping Is Draining Your Energy
Bookkeeping can be challenging and time-consuming. It often takes you away from more important tasks, such as identifying problem areas or growing your business. Many entrepreneurs simply don’t have enough time for it.
A skilled accountant can take that pressure off your shoulders and streamline your day-to-day operations. You’ll no longer have to worry about missed payments or the ever-changing tax regulations.
Furthermore, accountants can identify tax deductions that you may not be aware of. With their help, you’ll keep more money in your pocket and avoid unnecessary expenses. This site shows how small businesses can benefit from hiring an accountant, so check it out to learn more.
You’re Hiring New Employees
As a self-employed or small company, it’s not difficult to do your own taxes. However, handling the payroll for five employees is completely different than processing payroll for 50 employees. Even the smallest mistake can result in hefty fines.
More than half of U.S. workers are affected by payroll issues. Approximately 49% will start to search for a new job after experiencing two problems with their paycheck. Furthermore, incorrect payroll fillings result in IRS penalties for 40% of small to medium-sized companies.
An accountant can handle payroll on your behalf and ensure that your employees get paid on time. He will also take care of more complex issues, such as paying workers in a different state or deducting employee bonuses.
You’re Expanding Your Operations
Growing your business is an exciting step in your journey as an entrepreneur. Like everything else, it comes with its share of challenges.
During this process, you may hire new people, take on additional vendors, reach out to global customers, and so on. All of that leads to more paperwork. It gets even more difficult if you want to buy property or expand into a different state or country.
Unless you’re accountant yourself, you may not be able to handle these things on your own. Each state has different laws and regulations, and failure to comply can lead to penalties or even lawsuits.
Don’t take unnecessary risks, especially now when your business is growing. A good accountant can be a lifesaver.
Do I Need an Accountant?
Still wondering “Do I need an accountant?” In addition to the scenarios described above, there are plenty of other situations where you may need professional help.
Whether you’re paying too much tax, looking to make a larger investment, or starting a new business, hiring an accountant can make all the difference. Those who work in this field have the skills and knowledge to advise how to maximize your deductions, make smart investments, and mitigate risks.
If tax time is causing you stress, do something about it. Check out these simple changes you can make to improve your office life and enjoy better health.