For many small business owners, taxes are a stress point. Changing guidelines and regulations can make the filing process a difficult process for small business owners, but hiring an experienced team of accountants can take the worry and stress out of tax season. Here are some signs that it’s time to hire an accountant.
business is growing
All owners strive to have a growing business, but this can lead to confusion at tax time. As income increases, the tax liability increases. However, the number of deductions the business may qualify for may also increase. An experienced team of accountants can help determine which deductions will benefit the business and make recommendations for future deductions based on the projected growth of the business.
Managers are too busy for accounting
The path to proper tax preparation depends on accurate bookkeeping. If the business is too busy or growing rapidly, an accountant can help with the bookkeeping. The right company will be able to keep track of the books so that managers and owners can spend their time growing their customer base. The more time they can dedicate to operations and management, the better the business can run.
Profits do not increase along with income
An increase in revenue does not automatically mean an increase in profit. Accountants do more than handle tax preparation—they examine overall costs and look for areas of improvement. If they see a particular expense that can be eliminated or reduced, they will let the company know.
demand investors
Investors put their money into a company if they believe it will be successful, but their support often depends on a degree of participation. Many investors expect the owner to provide them with professionally prepared financial statements. These statements should give investors an idea of how the company is performing, how their contributions have impacted the business, and whether they can expect any return on their investment. Unless the owner or management team is familiar with preparing these returns, the process can take a while.
The Government requests an audit
Audits strike fear into the hearts of many taxpayers, and when people aren’t prepared for them, it can seem like the most daunting part of being a business owner. A team of financial professionals who are familiar with the audit process can help companies navigate the process, reducing the stress associated with government audits. Best of all, they understand the tax code and will work to make sure the audit is done correctly.
When businesses are starting out, they can have a hard time keeping up with the financial expectations required by the government. For financial professionals, the goal is to help make the business as successful as possible by reducing the strain and stress associated with accounting, taxes, and financial records. Owners need to be able to focus on managing and growing their customer base, not keeping track of overhead costs and expenses. A dedicated team of financial professionals will help operations of any size continue to grow and prosper.