When to Consider Hiring an Accountant for Your Small Business

Small businesses have a lot of accounting needs. You may feel qualified to handle them on your own, but you might need some help….Our content partner Nav.com has answers!

As a small business owner, you’re probably looking for ways to save money on operating costs whenever possible. You might even have a bit of financial knowledge, so why not handle the books yourself? After all, you know the basics of bookkeeping and pay attention to details. But at what point should you hand over this crucial responsibility to a professional?

The reality is that bookkeeping is not the same thing as accounting. Bookkeeping involves the recording of a business’ finances, and accounting encompasses much more. Accountants analyze, interpret, plan and summarize an organization’s finances to help leaders make informed decisions when running the business. It’s possible to automate most or all of your business’ simple bookkeeping tasks with software.

When Do I Need an Accountant?

Chances are, if you’re asking that question, you already know that you want help. It’s important to not get in over your head with your business’ finances, as you can end up making errors that lead to massively expensive problems down the road.

In reality, you can benefit from an accountant’s help in nearly every step of operating a small business, from acquiring licensing to selling your organization. Starting off with an accountant can help you learn more about bookkeeping basics, establishing payment structures, meeting regulatory demands, developing your financial strategy and much more.

If you already know a great deal about the fundamentals of bookkeeping and have a solid financial strategy when you’re just starting out, you may be able to hold off on hiring an accountant in the initial stages of your business. On the other hand, if you need help preparing taxes, restructuring your books, acquiring licensing, securing small business funding or planning, the cost of hiring an accountant can easily pay for itself when you consider the mistakes and headaches you end up avoiding in the long run.

What Are My Options?

Some accountants will work on a retainer, while others require an hourly rate for time spent on your business. If you need help but still feel that you can’t afford hiring a professional, you can look for an accountant consultant who will meet with you to establish your own process, interpret financial data and answer questions as they arise.

When you take away the stress and burden of small business accounting, you’ll have more time and energy to run your organization. Accountants specialize in navigating an already confusing maze, so you’ll benefit your bottom line with the help of a professional.

This article originally appeared on Nav.com and was re-purposed with their permission.

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Opportunity Fund, the nation’s leading nonprofit small business lender, believes small dollar loans help hard-working entrepreneurs make lasting change in their own lives and build stronger communities by growing businesses and creating jobs. Opportunity Fund’s community of donors and investors is creating an inclusive financial system that empowers women, immigrant, and minority small business owners. Our strategy combines microloans for small business owners and New Markets Tax Credit investments in high-impact community infrastructure projects. Since 1994, Opportunity Fund has deployed more than $750 million and helped thousands of entrepreneurs invest in their families’ futures. The organization has committed to lending an additional $1.2 billion to small business owners across the country and investing $174 million in community real estate projects by 2023.

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