How to Know when You Need to Hire a Professional for Small Business Accounting
Many small business owners do their own accounting work when they first start their business. In fact, it’s extremely common to take a DIY, up-by-the-bootstraps approach to launching your business all around: small business owners often describe the feeling that they’re “wearing all hats at once” – handling every task themselves, from tackling high-level questions about business strategy to cleaning the floors and stocking shelves.
And we should know – we’re small business owners ourselves!
Bookkeeping and accounting are often thrown into that entrepreneurial mix, right along with the many other responsibilities owners take on.
But as your business grows, so does the amount of work involved in DIYing these many tasks. What started out as easy enough to manage can slowly grow to be a much more significant amount of work as your business takes off.
And as you expand, there comes a time when juggling so many tasks yourself starts to hurt your bottom line. All the extra time and energy you devote to tasks you aren’t a specialist in takes a toll on your ability to perform at your best in the areas in which your business excels.
There comes a time in running a small business when you think to yourself Is it really saving me money to handle this on my own?
The answer isn’t quick-and-fast. Instead, it depends on your strengths, business model, and growth.
But there are some easy indicators that it’s time – it’s worth it – to hire a professional for your small business accounting.
So how can you know if it's time to reach out to a professional accountant for your small business?
Let’s take a look:
Here are some common milestones that indicate it might be time to hire a professional accountant for your small business:
When your business hires employees
When you begin to expand your payroll, the amount of detail you need to watch out for begins increasing exponentially. Hiring employees is one big milestone that is often an indicator that it’s time to hire a professional for your small business accounting.
When your business becomes your main source of income
This is another major milestone in the life of a small business owner that indicates it’s time to hire a professional. Maybe up until this point your business has been a job on the side for you – something you’re passionate about pursuing, but only a small part of your income. But when that side passion becomes the driving force behind your take home pay, getting the bookkeeping, accounting, and tax details correct becomes more important than ever.
When you start having to deal with inventory and sales tax
Opening up a storefront – whether it’s a brick-and-mortar shop or an online store – and dealing with inventory can bring a huge increase in the amount of stress on your bookkeeping. This transition in your business model is a very common place for businesses to turn to a professional for assistance.
We’re passionate about helping small business owners achieve success.
We take your small business accounting as seriously as we take our own so that you can focus your energy on what drives you.
If you're ready to talk about getting help with your small business accounting, we're here for you. Schedule a free, no-obligation consultation with us today and together we can figure out what's best for your business.