Is It Time To Hire an Accountant for Your Small Business?
As a small business owner, many decisions that you make when you are just getting started have a serious impact on the future success of the business.
Ideally, a small-business owner would seek the advice of an accountant before the business is even legally established so the accountant can recommend the most appropriate legal structure (LLC, corporation, partnership, or sole proprietorship).
Additionally, an accountant can advise the business owner about setting up bank accounts, using generally accepted accounting procedures (GAAP), government regulations, financing, and many other start up issues that, if done correctly, can save money in the future by avoiding mistakes that are costly to correct.
Take the Test
Unfortunately, many small business owners start out by “wearing all the hats.” If you are currently doing all of your own accounting, take this little test and see if wearing the accountant’s hat is the best solution for you:
- Have you created a business plan and a financial forecast and is the forecast in line with the plan?
- Are you sure your workers are classified correctly according to Federal guidelines?
- Have you read the tax code for this year, and do you have time to keep up with the changes to the tax code every year?
- Do you have enough time to take care of all of the accounting duties (balancing the bank accounts, bookkeeping, doing payroll, tracking withholding and FICA, issuing W2s and 1099s, filing your taxes) yourself?
- Can you create a proper financial statement if one is requested for financing anything for your business (equipment, vehicle, inventory, etc.)?
If you answered “no” to any question, then it’s time for you to hire a professional. We recommend a CPA (Certified Public Accountant) to ensure that you get the best and most qualified accounting services. PHB CPAs is proud to be considered one of the top CPA Firms Franklin TN has to offer. We would love to help you with your business.