Now that you are running a small business, or maybe want to start one, do you know whether you need an accountant or not? Well, no one can answer this question right away since different businesses have different modes of operation.
Some businesses might grow so fast to a point where they have to hire an accountant immediately while others take quite some time, giving the business owners a chance to wait for some time before thinking about an accountant.
That notwithstanding, it takes a lot of time and effort for small business owners to determine whether they need an accountant or not. This does not mean that business owners are not able to decide on this.
If you are struggling with deciding on whether to hire an accountant or not, we are going to discuss the questions you should use for guidance.
What To Ask Yourself?
No matter the profession you are looking to add to your business, the most important thing is to make sure that you are hiring qualified personnel.
When it comes to hiring an accountant, you need to pay attention to their CPA certification, one of the most important certifications for accountants. But before then, ask yourself the following questions;
Do You Have Enough Time to Handle Accounting on Your Own?
The first thing that you need to do is to find out whether you have enough time to handle your business’ accounting on your own or not. This should involve looking at your schedule and evaluating the number of tasks that you have.
If you find that you do not have time to handle the accounting work and ensure that your books are updated at all times, then it might be the right time for you to hire an accountant for your small business.
Are You Able to Handle Accounting Tasks?
Let us assume that you have enough time to handle accounting tasks on your own. You should now ask yourself since you have the time, are you able to handle the accounting tasks?
If you are not, then you might need to hire an accountant. Studies have shown that most business owners lack accounting skills, meaning that even if they had time, they are not able to handle their accounting.
Even if you might have attended one or two accounting classes in college, that is not enough for you to be an accountant. You need to hire a professional accountant to ensure that your books are updated.
Do You Have Enough Tasks for an Accountant?
Now that you have decided that you need to hire an accountant from the first two questions or either of them, you need to evaluate the accounting tasks that you need help on.
For instance, there are several tasks that you might think of assigning to your potential accountant.
These tasks might include preparing tax returns, analyzing the business finances, managing the business books, preparing financial statements, and ensuring that the business operations follow the set regulations.
Is it the Right Time for Hiring an Accountant?
In addition to the above questions, you need to find out if your business needs an accountant at this stage or rather at this time.
To start with, find out if the business is experiencing growth to a point where you need someone to take care of the financial books. This growth might get you so busy with business operations to a point that you are not able to handle the business accounts.
You might even have made a mistake while handling your accounting books and do not know how to rectify this mistake. If you have one or more of these problems, then it might mean that it is the right time for you to hire an accountant.
Can Your Business Afford Hiring an Accountant?
Finally, you need to find out if your business has the financial muscles to hire an accountant. This is important because you need to match the salaries that your potential accountant will ask for.
Accountants are among the most expensive professionals in the world. You, therefore, should make sure that you have enough money to pay them. If you do not have enough funds to pay an in-house accountant, you can think about outsourcing your accounting services.
If your answer to the questions discussed above indicates that you need an accountant, then it is the right time for your business to hire an accountant.
However, make sure that you hire one with the right qualifications, especially those with a CPA certification.
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Author: Claire Ward