What is the Best Time to Hire an Accountant for Small Business?
When you operate a small business, you sometimes feel like there are not enough hours in the day to keep your business running smoothly. For many small business owners, it goes beyond the products and services they offer or interacting with customers. There are also those not-so-fun requirements, like balancing checkbooks, doing payroll and organizing finances. Although you may be an expert in your field, very few business owners can manage the strict financial requirements necessary to keep a business running. That’s where small business accounting services can help. However, when you decide it is time to bring in an expert to handle your company finances, you want to be sure you bring them in at the right time for both you and the accountant.
Don’t Wait for a Crisis
The first thing to consider when deciding to hire a South Jersey accountant is to do so when things are running smoothly. You don’t want to bring in an accountant after there is already a crisis. This may include falling behind in filing your taxes, a need to file an extension on your tax filing or failure to make timely payroll tax payments. If you are already buried under in receipts and other bookkeeping tasks, hiring an accountant is a good idea, but you may pay more for them to get you organized.
How Do I Know if I need an Accountant?
There are signs that you may need to bring on an accountant like TMD Accounting. If you are finding yourself spending most of your time working on financial matters than you do in the day-to-day operations of your company, you may need expert assistance. Business owners who find themselves staying late to complete accounting tasks or taking the work home with you to do when you could be spending time with family. If you are asking friends or family members to assist you with complex financial matters or if your company is growing rapidly, small business accounting services may be the answer.
One of the main reasons to hire a South Jersey accountant is to avoid any tax repercussions that may occur due to errors. The United States tax code is very complicated, and it is unlikely you are familiar with some of the rules and regulations required of a small business. It is very easy to miss a filing deadline or to misunderstand questions asked during tax filing season, but an accountant is trained to understand the codes, even those that may have changed since filing last year. If you are facing an audit, you definitely want an accountant to be on your side, guiding you through any dealings with the IRS and helping minimize any penalties.
Starting a New Business
If you are just starting a new business, an accountant can help create financial projections and reports while also helping your plans look more professional. They can help you choose the right legal structure for your company and provide you with advice on how to best set up your accounting systems so that they run smoothly and more efficiently. As your new business grows, the accountant will continue to guide you so that your growth is optimized. Because they were with you from the beginning, they will have a better understanding of your vision.
Many businesses neglect to hire an accountant before seeking additional financing. Banks don’t simply hand out money, especially to small businesses who may not have the track record a large company may have. When you have an accountant working with you, banks are more likely to offer funding as they will see that you are serious about the success of your company. A small business accounting service can also help you choose the best funding for your business in order to save you higher costs in the long run.
Probably the best reason to hire a South Jersey accountant is to save time. Part of operating a business means creating reports, reconciling accounts, entering data, scanning receipts and reviewing expense reports. Shareholders want to see accurate profit and loss statements as well as professional balance sheets. The average business owner does not have the expertise necessary to excel at all these tasks. This is where an accountant can help. Accountants offer a range of packages. You may only need them to compile monthly or annual reports, or it may be time to turn over all your financial tasks to a professional, including payroll, accounts payable, accounts receivable and more.
When it comes time to expand your business, an accountant will be an invaluable asset. An accountant can help improve your returns on investment by advising you the best way to allocate resources properly. They can also help you identify consumer behavior so that products or services are tailored to specific needs. An accountant can also monitor your operations and make recommendations on areas where you can improve your company’s financial health.
If you are considering hiring an accountant for your business, contact TMD Accounting today to see what options are available. Our motto is “where numbers matter and people count,” a statement we live by every day. With more than 40 years of accounting experience, you can be sure that our accountants will handle your every need. Contact TMD Accounting today by calling 1-856-228-2205 or by visiting our website to learn more.