When should I hire an accountant for my small business?
A small business owner usually wears a lot of hats as they scale their business. For many, wearing the finance hat is just a part of the job. But, if you’ve ever stared at a growing backlog of unorganized financial tasks and thought, “I need an accountant!”, then chances are you’re already experiencing many of the signs that you’re ready to let a professional take over your accounting.
Should a Small Business Hire an Accountant?
The answer is a resounding YES. As a small business owner, even if you have the skill set and desire to do it yourself, it probably isn’t the best use of your time. While it can be tempting to try to save the money and follow the DIY path, you have to consider the opportunity cost associated with that decision. Most small business owners have an overflowing to-do list already. When you layer the recurring accounting tasks on top of it, something has to give. One of the most important lessons that any entrepreneur can learn is that you need to delegate whatever and whenever possible. Accounting should be at the top of your list. Accounting is time consuming and tricky. If you don’t do it right, the consequences can be significant.
If you’re still wondering “do I need an accountant for my small business?”, consider these reasons your small business can benefit from dedicated accounting and bookkeeping professionals:
- Save time
Time is the enemy of all entrepreneurs. When you make the decision to hire an accountant, you get your time back. Instead of spending your precious time recording transactions and invoicing your customers, you can focus on more important things like growing your business. Most small business owners are also not trained accountants and bookkeepers, which means they can end up spending quite a bit more time managing business finances on their own.
- Improve efficiency
A good accountant will not only post your transactions and run reports, they will look for opportunities for improvement. Often they are able to introduce new technology applications or process improvements that will streamline operations and drive greater efficiency. Those changes can make a significant impact on the overall performance of the organization.
- Improved decision making
When you get good information, you make smart decisions. The right accountant will help you organize your data into useful information that supports better decision making.
- Strategic guidance
A trained accountant or financial professional will often look at things from a different perspective and be able to provide strategic guidance for big decisions. Running a business can be a lonely job sometimes, but the right accounting partner will provide a much needed sounding board.
- Peace of mind
When your financial house is in order, you will feel more in control and less stressed out. It’s hard to put a value on peace of mind, but it is significant.
Is an Accountant Worth It for Small Business?
The 5 benefits of hiring an accountant for a small business that we listed above, definitely make an accountant worth it. Accounting services can also help drive better business valuations. This can be invaluable for primary or secondary fundraising efforts.
Should I Hire or Outsource?
Now that we have you convinced to stop doing the accounting yourself, you have another important decision to make. Should you hire a full time accountant or a fractional accountant to do the work?
Most small and mid-sized businesses are leveraging outsourced accounting or fractional accounting firms to handle their day-to-day accounting needs, and the reason is simple. It is a more cost effective solution that provides greater coverage for the range of services that small businesses need. Outsourced accounting services provide the best way for small business owners to get accounting expertise on their team without the overhead of a full-time hire.
At What Point Should I Hire an Accountant?
Accounting should be a part of your business from the beginning. However, hiring a full-time account can wait until your business grows. Many small business owners or their CFOs handle accounting in the early stages of the business. Later, small businesses can outsource their accounting to handle day-to-day needs without going through the pains and cost of hiring a full-time accountant. Hiring a full-time accountant differs for each business depending on the volume and complexity of their financials, reconciliations, and transactions.
What should an accountant do for a small business?
Small business accountants and bookkeepers are trusted professionals that are trained to manage basic ongoing tasks like invoices, transaction recording, and payroll while also diving deeper to analyze business costs, and provide educated advice on how to manage many financially impactful aspects of your business.
How do I find a small business accountant?
Stop wondering how to hire an accountant for a small business—we’re right here! Milestone Business Solutions offers accounting and bookkeeping services to clients of all sizes with competitive monthly rates that are affordable. We believe in developing true partnerships with our clients, and provide each and every one of our partners a unique approach to their accounting needs. We make life easier for small business owners while helping them grow successful businesses. Interested in learning more? Contact us today.
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