With a lot of small businesses, the finances take a back seat. You can be so focused on getting new business and growing your company that sometimes accounting duties can fall through the cracks. You may need to hire a certified public accountant (CPA) for your business. Here are five signs it might be time to hire a CPA:
1. You spend too much time on accounting.
There’s a reason the phrase “time is money” has become a cliche saying. Doing all of the accounting yourself is not the most valuable use of your time. There’s also a much higher chance that there will be errors because you are not a tax professional. When you hire a professional, not only will that free you up to focus on your business, but you can rest assured that there won’t be any errors.
2. Your company is in the middle of expansive growth.
When your company grows, the paperwork and accounting duties grow. Think back to the beginning of your business. How many people have you hired? How much of a revenue increase have you seen? If you’ve seen expansive growth, it may be time to outsource your accounting needs. Professional accounting services can actually contribute to the growth of your business.
3. You mix your business and personal accounts.
It can get risky to mix business and personal finances. As professional accountants, we recommend having a designated business account that you keep separate from your personal account. With a separate business account, you’ll be able to keep better bookkeeping records. You’ll also have more legal protection. And many business entities are actually required to have separate accounts.
4. You get stressed out during tax season.
It’s no secret that tax season can be one of the most stressful times for anyone. This is especially true for business owners. CPAs know much more about the tax code than accountants or bookkeepers. They have to demonstrate their knowledge of tax codes to get licensed. In many cases, CPAs actually participate in education that is ongoing to stay updated on the tax laws that constantly change.
5. You are being audited.
In the event that you get audited, your entire financial history is exposed. You’ll be in a much better position if a CPA has done your taxes. Their official license allows for them to represent you if you have to face the IRS. If there were a lot of errors and they raise red flags for the IRS, you could potentially be in real trouble.
These are just some of the reasons why your business may need to hire a CPA. There are many more reasons like not fully understanding taxes or starting a new business. If you are interested in the services of a CPA, contact us today and get started securing your business finances.