Depending on the company’s needs, you might perform the duties of the CEO, secretary, salesperson, accountant, or even an intern on any given day. Although this juggling performance might initially succeed, the trick becomes no longer viable as the business grows. Taxes and financial planning, for instance, become incredibly complex and time-consuming, especially if you work in a sector with strict regulatory or compliance standards.
To that end, every expanding organization eventually reaches the point where hiring an accountant is a requirement. How can you determine the ideal time to hire an accountant, though? By observing the following signs:
There is Too Much to Handle During the Tax Season
Perhaps you have just received a sizable refund or owe a sizable sum in past taxes. These red flags indicate that you are not effectively managing your business taxes and may benefit from professional tax compliance services.
Tax season can be among the most stressful periods of the year, even for experts familiar with the complexities and subtleties of tax rules, standards, and regulations. You only need to make one error to get into trouble with the IRS. Even unintentional mistakes and oversights could incur an IRS fine. Employing an accountant could provide you with someone capable of the following:
- Tax Preparation
- Tax planning
- Preparing taxes and submitting them
- Ensure you optimize your deductions and credits by submitting financial reports and paperwork to the IRS.
You Spend Too Much Time on Bookkeeping and Tax Planning
Your time is limited if you own a business. Spending money and time on projects that are not a good fit for your skill set becomes unaffordable. Additionally, transactions get more challenging as the company’s revenue increases.
Just think about all the tasks an accountant could complete that would undoubtedly need many hours of work each week, such as:
- General ledger and account reconciliation
- Taking charge of daily transactions
- The creation and evaluation of financial statements
- Accounting for costs and analyzing variances
- Management of the treasury and cash, including bank reconciliations
- Payroll and accounting for fixed assets
It could be time to engage Evolved LLC tax compliance services if you don’t have the time or knowledge to handle these many accounting tasks.
Your Business is Expanding Out of State.
There will be new laws governing your firm and its taxes as soon as it departs the protections of its existing state. You’ll probably encounter the following during this expansion:
- Hire new personnel
- Start a new business
- Manage cross-state commercial transactions
If so, an accountant can ensure that you adhere to the state’s reporting requirements for income, sales, and payroll taxes. They can also review your papers and find any potential incentives you might have missed.
You Need Assistance With Financial Reporting
Is it time to add more capital to your company at this point? If so, the investor proposal and decision-making process will heavily rely on your company’s financial data.
An accountant can quickly create the documents, ensuring they are accurate and have all the required information. By doing this, you improve the possibility that outside investors would be ready to risk their money on your company and set it up for success.
