When is it time to hire an Accountant?
When is it time to hire an accountant?
Hiring an accountant is crucial for business success. They navigate financial complexities, ensure accurate tax filings, and offer valuable insights. From startup uncertainties to growth and audits, accountants provide essential guidance, turning challenges into opportunities. With their expertise, you save time, money, and gain peace of mind, setting your business on a path to prosperity. Here are five key points highlighting the time to hire an accountant and how hiring an accountant is helpful:
1. You’re starting a business
Many small businesses begin without an accountant, but hiring one early on is a smart move. Instead of worrying about the cost, think of it as an investment that saves you time, money, and stress as your business grows. Bring in an accountant when writing your business plan, they’ll help decide the best legal structure to protect your personal assets. Accountants guide you through these choices, offering financial knowledge upfront and saving you hassles down the road. With their expertise, you make informed decisions, stay compliant with regulations, and set your business up for success.
2. Your business is growing
As your business expands, an accountant serves as a reliable guide, preventing financial missteps in times of rapid or steady growth. With increased profits, they help you make wise investments to safeguard your business’s future. Accountants play a pivotal role in year-end tax planning for financial stability. During growth phases, they assist in updating your evolving business plan, considering factors like branch openings and product line expansions. Accountants analyse information to enhance your business, offering advice on smart investments. Even in a stable business, armed with analytics, they identify areas for improvement. Trust your accountant for informed decisions and a prosperous future.
3. You don’t understand business taxes
Filing small business taxes is challenging, especially for beginners, as mistakes may result in penalties and missed opportunities to reduce tax bills. Hiring an accountant proves beneficial by providing invaluable support and guiding you on the correct tax form, reminding you of deadlines, finding tax credits, and explaining financial records. This strategic move is particularly wise when starting your business, ensuring accurate form completion and navigating tax complexities at any stage. An accountant’s expertise safeguards your financial interests, maximizes tax benefits, and promotes sound business practices.
4. You need help with forms
Getting money from banks isn’t easy. They want to make sure you can pay it back with interest. Nowadays, it’s even tougher for small businesses to get loans. That’s why it’s crucial to present a strong case for your business when applying. Having an accountant can boost your chances because it shows the bank you’re serious about managing your business. Your accountant uses software to create a solid case with facts and figures, proving you make smart decisions. They also help choose the best funding option, like business credit cards or loans, saving you money. For tax forms, full-service payroll software can handle them, filing payroll taxes for you.
5. You get audited
Facing an audit can be stressful for business owners. During this process, the IRD looks at your financial history to find mistakes. Accountants can help you by double-checking your records to make sure they’re right, filling in any missing details, and creating reports to avoid getting audited by the IRD. Though it’s unlikely the IRD will audit your business, it’s risky to ignore the possibility because it can be costly and stressful. If you’re being audited and don’t have an accountant, it’s a good time to hire one for help. Hiring an accountant before an audit is even better, especially if they offer audit insurance, which can waive fees and prepare your books for a smoother audit. Using modern accounting software with an audit trail helps the accountant give the IRD all the needed information.
By Shanti Raut
Account Trainee at 25 Gate Accounting & Consulting Pvt. Ltd.