Running a small business can be incredibly rewarding, but it also comes with a host of financial responsibilities. One common question for entrepreneurs is when it’s the right time to hire a small business accountant. While some business owners manage bookkeeping and taxes on their own for a while, there comes a point when professional accounting support can save time, reduce stress, and ultimately protect the financial health of the company. In this blog post, the experts from Mark Dicus & Company provide a better understanding as to when this transition should happen and how it is key to making the most of your business resources.
Assessing Revenue & Complexity
One of the primary indicators that it’s time to hire an accountant is the size and complexity of your business’s revenue streams. If your business consistently generates more than $100,000 annually, the financial records become more complex, and mistakes can be costly. Even businesses with lower revenue may need professional help if they have multiple income streams, inventory to track, or payroll obligations. An accountant can help ensure that your financial statements are accurate, taxes are properly filed, and potential deductions are not missed.
Time Management & Efficiency
Another important consideration is how much time you spend on financial tasks. Business owners often underestimate the hours required to maintain accurate books, reconcile accounts, and prepare for tax season. If bookkeeping and tax preparation are consuming a significant portion of your week, it might be more cost-effective to hire an accountant. Delegating these responsibilities allows you to focus on growing your business, managing clients, and improving your products or services. An accountant can streamline processes and implement systems that make financial management easier and more efficient.
Navigating Taxes & Compliance
Tax obligations for small businesses can be complicated, especially as your company grows. Hiring a small business accountant ensures compliance with federal, state, and local tax regulations. They can help with tax planning, deductions, and credits, potentially saving your business thousands of dollars each year. Businesses with employees, contractors, or multiple locations particularly benefit from professional guidance to avoid penalties and ensure accurate reporting. Early engagement with an accountant can also prevent tax issues from accumulating over time.
Planning for Growth
Even if your business is still small, thinking ahead is important. An accountant can provide insights into cash flow, budgeting, and long-term financial planning, helping you make informed decisions about expansion or investment. By involving a professional early, you can establish sound financial practices that will scale as your business grows. This proactive approach can be more effective and less stressful than bringing in an accountant only after financial challenges arise.
Tax Preparation, Filing, Planning & More in Salt Lake City, St. George, West Valley City, Provo, Orem, West Jordan & Greater Cedar City, Utah
There is no one-size-fits-all answer to how big a business should be before hiring a small business accountant. Revenue size, complexity, time constraints, tax obligations, and growth plans all factor into the decision. However, any point at which financial management becomes overwhelming or threatens the accuracy of your books is a signal that professional help is needed. By hiring an accountant from Mark Dicus & Company when the timing is right, business owners can safeguard their finances, focus on growth, and gain peace of mind knowing their business is on solid footing. Call Mark Dicus & Company when you feel your business is ready for more professionals in your corner.