Starting your own business or being a sole trader usually involves you managing your own business accounts. Whether it be for financial reasons or because it was just easier at the time, you have managed up until now.
Off the shelf programs like Xero, Quickbooks and even free accounting apps like Wave are more than capable of keeping your accounts in order. But once your business starts to grow, it becomes more apparent that you may need some extra assistance, especially when you start dealing with tax, GST and legal implications.
So how do you know when it’s time to hire yourself a business accountant?
You’re Running Out of Time
This is probably the first key sign you need to employ some much needed help. Managing the books can take hours on end and they are usually left to late at night. This causes undue stress and you end up working in your business not on it.
You Don’t Understand Accounts
You may have tried to do it on your own, but accounting isn’t for everyone. It is one of those things that usually scares the pants of people. Don’t be ashamed if you don’t know how to balance the books because you are good at your business and that is all that matters. I don’t know how to sew, but give me a page of numbers and I’m happy!
Your Accounts Are Beginning to Confuse You
You may have been doing really well until now. You’ve been managing your invoices, balancing the books and all was going well, and then boom, business started to pick up and all of a sudden a massive overwhelm has hit. It’s time!
You Are Creeping Into GST Territory
If your business is starting to make inroads into the GST territory i.e. you are reaching $75,000 in revenue, then you will probably need an accountant. Once you reach the point of needing to register for GST, your tax obligations increase which will increase your workload. You may also not understand all the ins and outs of GST, so having someone who does can be a great asset.
You Want To Grow Your Business
Business expansion is what we all aim for. Strong business growth means we are generating more income and making our mark in the business world. What comes with growth though is usually more staff, more paperwork and more financial obligations. It may become impossible for you to manage it on your own, so hiring a professional is the only way to go. You might also need the advice of an accountant to show you how to grow your business. They can strategise your business and show you where potential growth lies.
Revenue is Increasing But Profits Are Not
This can happen. Just because business is booming and the bank balance is seemingly ticking over doesn’t mean profits are increasing. You could be outlying as much as you are bringing in. A good accountant will help steady the ship and show you ways to increase profits as well as revenue enabling your business to grow stronger.
You Need To Sell Your Business
There comes a time for whatever reason that you need to sell your business. Depending on your business position, it might be worth engaging an accountant to do the books and prepare your business for sale. They will also be able to advise you on the best way to proceed with a sale. All potential buyers will want to see the business books so they need to be accurate and organised.
Investors Need Professional Reports
Your business may be one that has investors or stakeholders as part of its structure. You will need professional reports generated for them on a regular basis. An accountant is best placed to do this for you as off the shelf programs may not give the professional appearance or functionality your business needs.
If you can relate to any of the points above or you are just feeling a little bit of accounting overwhelm in your business, please feel free to get in touch. We can help you navigate your way through the accounting minefield.