As a business owner, you always want to stay ahead of every aspect of a venture. This is why the thought of outsourcing crucial financial information to an outside accountant can be unsettling for most. However, it comes a time when you need to lighten your load and let the professionals help you out for the greater good of the business. This post considers signs that it is time to hire a tax accountant.
When you’re not good with numbers
Miscalculating income and expenses can adversely affect your bottom line. If you find yourself struggling to keep track of significant numbers, it’s time to hire help. A tax professional will take the burden off your shoulders so that you are free to pursue more pressing matters in running a business. Furthermore, they will provide detailed reports that can give you an idea of how your business is doing in terms of financials.
When a lot is going on in the company
Running a business gets busy from time to time, especially when there are so many things happening simultaneously. During this period, you tend to lose track of any vital information, including your finances. You need someone to help manage all these tasks for you to focus on what you do best in running a business. When it’s becoming increasingly difficult to keep everything organized, it might be a good time to think about hiring an accountant.
When you’re looking for more business opportunities
It’s easy to get caught in the moment when things are going well with your venture, especially when there is a lot of money coming in every month. However, it’s important not to lose focus on what needs to be done, which includes managing your money. Hiring a new accountant will help you achieve this goal by giving you more time to look for ways to grow the company and meet new clients looking for your services without compromising the sanity of your daily business operations.
When there’s a lot of bookkeeping involved with running business operations
The moment that taxes come into play, it is no longer a simple process of keeping track of your income and expenses. It becomes a very tedious task, especially if you don’t have the right tools to do them efficiently and accurately. Hiring an accountant can help streamline this issue as they are well-versed in all aspects of bookkeeping, including taxes, invoicing, payroll management, etc. This will free you to do what really matters: providing the best services possible for your clients.
When it’s too complex or time-consuming
It can be overwhelming when too many things are going on in a business to delegate enough time to each department. You might have to spend most of your time marketing the company because there are numerous opportunities to take advantage of. Instead of leaving the accounting department neglected, why not hire an accountant to fill in the void left?
When numbers don’t add up
There’s a common saying in the business world, and that is, “if you cannot measure it, then you cannot manage it.” As much as this sounds like something out of a management seminar, there is some truth. If numbers aren’t adding up on your end regarding expenses vs. income or taxes owed vs. what was paid for, it might be a good idea to hire someone who can help you with these issues. It’s much easier for an accountant to take care of the complex numbers to avoid confusion in the future. This will give you peace of mind as you focus on running the business efficiently.
When there’s a need for an expert review
If there’s a need for an expert review in your business, it might be time to leave it to the professionals. Contracting the right person can provide just that as they can assess all aspects of the financials and give you their honest feedback, which is necessary, particularly when there’s a lot on the line like taxes and other liabilities. This will potentially save you lots of trouble with authorities like the IRS about your tax filing status and simplify things for you in the future. Furthermore, there are times when it might be necessary to get tax advice to make sure that you don’t end up paying more than what is owed by law.
When it’s time for your financials to be audited
It becomes necessary to have an outside party look at the company finances when there is a need for legal compliance to produce tax documents or suspicions about fraud in running business operations. An accountant will help provide this service as they are well-versed in auditing and provide reports that support their findings. This way, you won’t have to worry about your tax savings or getting caught up in an erroneous investigation.
When it’s time for an annual report
An accountant can help provide the necessary reports for an annual report needed by a board of directors or other interested parties. This is crucial because it provides a clear picture of how the business performed throughout the year to make critical business decisions. You will need a qualified accountant to help you achieve this because it takes more than basic bookkeeping knowledge to prepare a detailed annual financial report. Not to mention that your company will be tax efficient.
Contact Us for Help!
At LBS Tax, we help business owners with all aspects of their finances so they can focus on what really matters, which is providing quality services to their clients. Whether you’re looking for a bookkeeper to run the daily financial affairs of your business or a tax accountant Chandler, give us a call today!