Do I Need an Accountant for My Small Business?

As small business owners and entrepreneurs, we tend to try to do everything ourselves. On the one hand, that can-do attitude helps build successful businesses out of nothing, but on the other hand, trying to do everything yourself is not only a recipe for burnout, but it’s also not always advisable to try to do certain things yourself. Just like I would never try to perform a medical operation without any training, there are several reasons you should hire an accountant to handle the finances for your small business.

You Don’t Have the Necessary Training

While bookkeeping consists primarily of data entry, accounting requires more analysis of the numbers you’re entering and what those numbers mean for the financial health of your business, and what moves you should take next as a result.

So, before you start trying to do your own accounting for your small business, you should consider things like whether you know the difference between single entry and double-entry bookkeeping systems. What does FIFO mean? Or LIFO? If you don’t have a ready answer for these questions, you should probably leave the accounting for your small business to the professionals.

Your Time Is Limited

Even if you can do your own accounting for your small business, I’d be willing to bet you have other things you’d rather be doing with your time. When you hire an accountant for your small business, that frees up hours of your time you can spend doing what you do best for your business. The result is an increase in productivity and revenue for your business that far outweighs the initial investment you made in hiring an accountant for your small business.

So, if you’re still trying to do your own accounting for your business, the next time you sit down to run through the numbers, think about all the things you could be doing with that time, and what that would be worth to you.

Doing Your Own Accounting Can Get You in Big Trouble

If you think you can’t afford to hire an accountant for your small business, especially if you’re just starting out, consider whether you can afford to have the IRS come knocking on your door because you filed your income taxes for your small business improperly.

Not only does hiring an accountant free up your time on a weekly/monthly basis when it comes to data entry and analysis, it can also free up an incredible amount of time and money by preventing the IRS from auditing you because you didn’t realize you had made a critical mistake on your income tax returns for your small business.

Understanding that different businesses have different needs is why I provide different levels of accounting and bookkeeping services. Some businesses need the full CFO-level services, while others just need help staying on top of their bookkeeping. Regardless of the stage your business is in, I have a service that fits your needs and your budget.