When you first start your own business, you are trying to keep your costs down and maximise profit. This means that you will try to do a lot of tasks yourself. But, as your business starts to grow and gathers a bigger customer base, your priorities are going to be different. In most cases, you will not be able to handle the workload all on your own. You will need to start hiring a team of employees to help you.
A lot of business owners question whether they really need to hire an accountant. If this is something you have been considering, here are some signs that it is time to add an accountant to your books.
Bookkeeping is Taking Too Long
Anybody that owners their own business knows how important bookkeeping is. You have got to have a good system to ensure that you record all of your financial information. This way, when it comes to paying tax, you are all set and up-to-date with your records.
When you first started your business, you probably did all the bookkeeping yourself. In fact, you may still take on this responsibility now. But, if you find that bookkeeping becomes too complicated or is taking up too much of your time, this is a sign that you need to think about hiring an accountant. They are going to offer you professional bookkeeping services that can take this weight off your shoulders. Bookkeepers will tend to use tailored software like Knuula which helps improve their efficiency. Without this responsibility, you can focus on other tasks involved with your business.
You Are Investing in Expensive Equipment
It is essential for businesses to keep investing in their equipment. With some expensive purchases are on the horizon, it may be time to hire an accountant. They are going to be able to offer you professional advice. You are going to need to know what your current financial situation looks like and whether you can afford to make this purchase.Indeed, an accountant is going to know all of the numbers and whether investing in expensive equipment is the right move for your business just now. They are going to ensure all of your finances in order, as well as offering an objective opinion on big moves. For example, your finances might mean that it is best to hire equipment right now rather than purchase it.
You Are Being Audited
If your business is being audited, this can be a daunting and stressful time. You will receive notification by this in the post and it can be contained in a dreaded brown envelope. HMRC is going to conduct a thorough tax investigation and ensure that you are being compliant.Know that there is going to be a lot of work involved in an audit by HMRC. You really want to have an accountant on your side to help you. They have the knowledge and experience to know how to handle this type of process. This is going to allow you to continue running your business and it is going to take some weight off your shoulders. Do not be afraid to seek help, as you want to ensure that you successfully survive the audit.
You Need a Loan or Investor
There can be several situations where you are going to benefit from a loan or an investor. Perhaps you have hit some financial trouble and want to ensure that your business survives. Alternatively, you are growing at a huge rate and are looking for some funds to continue expansion. Either way, you are going to need accurate and details financial reports to show relevant investors and for loan applications.Again, this is something that an accountant can take care of. They have the expertise to comply with the necessary financial history you need and ensure your proposal or application is done correctly. It can all be done professionally and they will include all of the important information.