Do You Need to Hire an Accountant for Your Small Business?

As a small business owner, there will always be those tasks you don’t want to do. Things like managing the books, working out tax and remaining compliant, and other legal requirements you may need to adhere to. This is often why businesses hire accountants to manage the numbers and paperwork. But, as a small business, do you need to use an accounting firm? Or is there a better use for these finances until you get bigger?

What does an accountant do?

Accountants are a fairly popular profession, so there’s a good chance you know who they are, but do you know exactly what they do? Accountants provide an in-demand service to businesses. They manage and analyse financial records, ensuring that the business’s financials are accurate and comply with legal regulations. 

In addition, they would prepare financial statements, track transactions, and provide professional insights into financially related matters that can help businesses make good financial decisions. Their services also include managing business budgets, tax planning and the submission of tax returns, and financial planning for the business overall. 

Do you need to hire an accountant?

As a business owner, this is a vital question to ask. For small businesses that have very few transactions and not many staff members, you could probably manage your accounts by yourself and reach out to an accountant once or twice a year when you need to. That said, if you asked most business owners what their plans are for their business, their answers usually involve growth sooner or later. 

This implies that the business might expand, hire more employees and generate more income. When this happens, staying on top of bookkeeping and accounting can get difficult, and you can make costly mistakes. Thus, at this stage of your business, it may be wise to invest in an accountant. 

Signs that your small business could benefit from an accountant

While you’re running your business, it’s super easy to get caught up in day-to-day operations. Unfortunately, this may cause you to overlook aspects that could be important. This is often why many business owners take the plunge early and hire an accountant. But, if you’re still on the fence about what you should do, here are some signs that may indicate that you need to hire an accountant:

• Keeping a record of your financials is just one aspect that needs to be done when it comes to accounting. On the other hand, if you’re not able to use your knowledge about your current financials to make proactive decisions that will benefit your business, then you need to take a step back and analyse your capacity
• If you notice that the business is earning more money, but your profits seem to be stagnant or decreasing, then you have a problem. You’re most likely overspending somewhere. Hiring an accountant can help you pinpoint where you’re overspending faster so you can sort out the issue
• You spend more than 8 hours a month on accounting. Remember, for small businesses, depending on the way you’ve set it up, the majority of the day-to-day operations rely on you. Essentially, your time is valuable. Every hour you spend on accounting could be time used to grow your business, making it a bad use of your time, especially if you can pay an accountant to do it with the money you make in those 8 hours
• Finally, if you need expert financial advice on how to navigate tax or another financial situation, tax can be a pain for businesses if you don’t know how to navigate it. With an accountant, you can plan for tax, reduce it, and optimise your business profits

Where to find the right accountant for your small business

Investing in an accountant is generally considered to be a wise move as a business owner if you can afford one and need one at the moment. Unfortunately, we often find business owners struggling to find an accountant they’re willing to hire. If this is you, then we recommend contacting Walkerhill Business Accountants in Brisbane. With experience in helping small businesses, Walkerhill offers tax planning, accounting, and expert business guidance to small businesses like yours. 

Final thoughts

As a small business with one or two employees, hiring an accountant immediately may not be in your best interest if you can do it yourself. In many cases like this, business owners hire accountants once off to finalise their taxes and any other requirements they need to meet. But, if you’re a larger business with multiple transactions and dependents, hiring an accountant will save you both time and money in the long run.