As your business grows, you may need the help of various professionals and consultants. Wondering if your growth necessitates hiring a business accountant? Here are four signs it's time:
1. You've hired your first employee.
Figuring out how to calculate and remit payroll taxes for employees can be challenging, and you may want a business accountant to help you. Additionally, an accountant can help you figure out how to implement retirement savings plans for employees as well as other benefit programs.
2. You don't want to use apps or other organisational tools.
As your business grows, there are more expenses to track and revenue to account for. There are a number of expense tracking apps and even full-scale accounting software that makes it possible for amateurs to do their own bookkeeping and accounting. However, if you don't want to devote extra time to using software, you may just want to hand everything over to a business accountant.
Essentially, you have a few different options. You can save expense receipts, canceled checks, statements from POS systems, and other proof of income and expenses and have your business accountant take care of the rest. Alternatively, if you like to have a bit more order throughout the year, you can use an app to organise some of it and then have your accountant help with lodging your tax return.
3. You need financial documents for lenders or investors.
Accountants, as implied above, can help you with bookkeeping tasks and filing tax forms, but they can also help to create detailed financial statements about your business. If your business is growing and you want to reach out to lenders or investors so that it can continue to grow, you also may want to elicit the help of an accountant. An accountant can help create financial projections for business plans as well as financial statements to reassure investors.
4. You've invested in capital property.
As your business grows, you may also buy capital property. Capital property may include buildings, equipment, or other relatively expensive items. In most cases, writing off these expenses on your business tax return is a bit complicated, as you can only write off a portion of capital assets each year. Additionally, you have to account for capital gains or losses if you sell the property. A business accountant can ensure all of this is done accurately.
Want to learn more? Contact a business accountant to talk about your financial and accounting needs today.