How to Determine When and Why Your Small Business Needs Accounting Services

Entrepreneurs and new business owners don’t always have accountancy training themselves. Due to this, it can be hard sometimes deciding whether or not to hire an expert to handle your announcing skills.

When is it a good time to do so, and why? Fret no longer, as we’ve written this post to let you know when it’s the best time to look into hiring a small business accountant. 

What Is a Small Business Accountant?

A small business accountant is the same as any ordinary accountant, with the caveat that they are often more experienced in accounting for small businesses.

Having an accountant, provided you’ve sourced them from the appropriate accounting firms, can be a huge help in developing your business. They can assist with all accounting paperwork and the necessary taxation for your company.

But they can help with a lot more than just the accounts. Any information they provide can be used by you to plan your next big moves in business terms. Meeting with your accountant can help you with budgeting for the future. 

This can include sourcing new suppliers, employing new staff, and paying for marketing. But many business owners are unsure what time is best for them to invest in the help of a small business accountant.

When Should I Get a Small Business Accountant?

In the early stages of a company, it’s very normal for an entrepreneur to handle their own accounts. There are various accounting apps and services available today that can make that easier for a business owner.

But at some point, you are going to have to employ an accountant so that you can focus on other aspects of your business. The simplest answer to this question is when you can comfortably afford to, if not slightly before. 

The answer is different for different forms of business, however. If you are a sole trader (a single business owner) you shouldn’t need to invest in an accountant as your taxation requirements are likely much simpler. This is, however, dependent on how big your business becomes, and how comfortable you feel managing it yourself.

If your business at any point becomes significantly larger or more complex, you should invest in an accountant if you haven’t already. This allows you the ability to focus on expansion whilst they handle the complex accounts.

Essentially, if you think you can handle your accounts yourself still and have minimal transactions, maybe hold off. However, if the accounts are becoming too much for you, you should source an accountant.

What If I Need Further Assistance With My Small Business?

If you need further accounting support for your small business, or otherwise, you should look through some of our previous blog posts.

We’ve written several other helpful guides similar to this one on your need for a small business accountant. Take a look through some of our other posts today to ensure you are fully prepared for any challenges your small business might face in the future.