For any small business, getting your accounts in order is a necessity. In the beginning, when expenditure and profit are only generated from a few sources it can be easy to keep track but as your business grows it may worth hiring an accountant.
Consider the following questions:
Can I keep track of my business finances?
This is probably the most obvious question to ask when considering an accountant. The majority of businesses that go bankrupt do so because the owners are miscalculating their income and outgoings. Unless you can accurately say how much profit, or debt, your company is racking up, an accountant must be a consideration.
Tax becomes even more complicated than normal when your business begins to grow. From various employee tax codes to the knowing the difference between business and personal expenses; an accountant will make the tax situation at your business clear and easy to understand. Accountants are also bound by rules and regulations; so you can have the peace of mind that comes from knowing the taxman won’t be pouncing on any mistakes made. A good accountant should be able to perform small business accounting that allows you pay the least amount of tax possible whilst still remaining within the law.
Am I making the correct financial decisions?
An accountant can advise on financial decisions that could be vital to your company. It may be the case that it is more cost effective to rent, rather than buy office space for example. It may also be the case that it is more cost effective to outsource services, such as human resources, rather than employ people for this function. Your accountant will have in depth knowledge of you businesses financial structureand will be able to make informed judgement on situations such as these.
Is hiring an accountant cost effective?