Entrepreneurs often where many hats, taking on many tasks within a business. However there are some tasks that are best left to professionals, such as Accounting. Here are 5 signs that it is time to hire an accountant--
1. You are starting a new business and will be pitching your business plans to potential investors. A important part of your business plan are projected financials. It helps to give a clear financial direction. It is also an important tool in planning ahead for expenses that will be incurred.
2. You are becoming overwhelmed with Accounting tasks amongst the other tasks you perform. As your business begins to grow, it becomes more cost effective to delegate tasks. No need to spend valuable time in trying to DIY your accounting. It is also beneficial to have an Accountant in your corner handling details such as filing sales taxes, issuing 1099s, and ensuring that you are tax compliant.
3. You are ready to separate your business finances from your personal. Although it is recommended that this be done from the very beginning, if you haven’t now is the perfect time to do so. Hiring an experienced Accounting professional will help make the transition less stressful.
4. You are ready to make a major shift in your business. Accountants are valuable business advisors, they are trained to identify areas in your business that may need improvement. an accountant experienced in your industry is beneficial because they go beyond delivering monthly financials and offer insight to your numbers as well as useful metrics for your business.
5. You are ready to begin Tax planning. Your Accountant specifically a CPA, should go beyond filing your yearly taxes. As your business grows, it is worth investing in an Accounting professional that can create strategies for you to benefit from tax deductions.