Should I Hire a Personal Accountant? This is How to Decide

At first, handling your own business finances seemed manageable. You bought the software, learned the ropes and attempted to do it yourself.

Yet, it didn’t take long to realize that as your company grows, so do your financial obligations and all the stress that comes along with them.

Are you over your head with tax forms, calculations, due dates, and payment terms? If so, it might be time to hire a personal accountant.

Before you go on the hunt for the best one, take a look at our list below. Today, we’re sharing the top signs that it’s time to let an expert take the reins so you can get back to business. Let’s get started!

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1. You’re Overwhelmed with Bookkeeping

As the online accounting industry has grown, there have been myriad resources and programs released that make it easy for almost anyone to become an armchair accountant.

However, most of the time, these resources can only take you so far. If you find yourself staying late at the office every day and dedicating your weekend to balancing your books, it’s time to outsource your personal bookkeeping efforts.

As a business leader, your primary focus should be on managing your team and growing your bottom line. Accounting shouldn’t take over the majority of your day and when it threatens to overtake your time, it’s time to make the decision. At the end of the day, what is your time worth?

If you value your time at $75 per hour and you spend 10 hours per week on bookkeeping, that’s $750 you could have poured back into your business, not to mention your personal sanity!

2. Your Numbers Don’t Balance

Your company is growing and your revenue is better than ever. The only problem? Your profit appears to be stagnant.

This is where it helps to have a professional eye taking a look at your balance sheet. An experienced accountant is skilled at finding ways to help your company thrive. If your sales are up, your bottom line should be, too. If it isn’t, then you’re likely losing money in other areas, and you might not even realize it.

An accountant can shed light on these issues and help you remediate them.

3. Your Business is Growing

You’ve dreamed of major business success and it’s finally here. The only problem? You’re now a little anxious about all of the new demands that were suddenly placed on you.

This is a critical time in your company, and you need to be present as a leader, not stuck crunching numbers until 9:00 p.m. with your nose in the books. If you anticipate that this growth will continue, it’s wise to go ahead and hire a team of professional bookkeepers.

More business means you’ll likely need to hire more staff, buy more inventory and establish more robust operations to keep pace with it all. In other words, you’ll soon be stretched in a million directions and this is one you shouldn’t have to add to the list.

4. You’re Considering a Big Investment

Have you been eyeing some land to expand your business territory? Are you considering investing a substantial amount of capital into a new piece of heavy-duty machinery or technical system? If so, you might think you have the funds to do so, but are you certain?

A professional accountant can take a realistic, unbiased look at your business finances and help guide you as you make this big decision. If you’re unsure in the slightest about your ability to afford such an expenditure, it’s best to get a second opinion from someone who’s well-versed in handling these types of negotiations.

Too often, companies go into the red because they thought they could handle a major expense or pay it off down the road. Yet, if you’re a small business owner, you might not be prepared to assume such a risk. An accountant can let you know quickly if this is the case.

If you aren’t ready to make such a leap, your accountant can even set you up on a specific plan or track that can enable you to afford it down the road. This way, when it’s time to sign that big check, you can do so with confidence.

5. You’re Ready to Expand

Are you ready to grow your business outside of your local borders? Whether you want to add a second satellite office a few states away or open up a new location halfway around the world, you’ll need to understand the tax laws and local regulations in that area.

Again, this is an endeavor that can quickly drain all of your time if you let it. Even then, you could wind up misunderstanding a fine-print detail that could derail your efforts in a second. When you hire a personal accountant, you can have someone by your side to guide you as you undergo your expansion effort.

From hiring new employees to navigating payroll taxes, there are myriad considerations to keep in mind with any expansion, and this isn’t a step that you’ll want to tackle alone. Before you even begin weighing the possibility of making such a move, go ahead and bring an accountant on board. You’ll need their expert guidance as you navigate your next steps.

6. You Need Official, Organized Financial Reports

There are a few reasons why you might need to organize your disparate financial documents into a complete and comprehensive portfolio. First, any time you’re seeking investors or requesting a business loan, those entities will want to see a detailed report of your company’s financial history.

Bringing in stacks of random paperwork and charts from years ago won’t cut it. A personal accountant can help you weed through the tomes of data to find the necessary information you need. Then, they’ll help you prepare it in a professional way to share with potential supporters.

Another reason why you might need this service? If you’re being audited soon.

A tax audit is stressful enough. At the very least, the conversations you’ll need to have with the IRS can feel intimidating. It becomes more of a burden when they’re asking for tax or accounting information that you can’t find.

An accountant will help you locate the critical information needed to answer the IRS’ inquiries so you can focus on running your business in the interim. This way, you can avoid tax penalties and keep your good business reputation moving forward.

7. You Need Financial Guidance

Finally, let’s discuss the simplest reason you might need to seek the support of a personal accountant: This just isn’t your industry.

There are new innovations and changes happening every day in the accounting sector and unless you’re immersed in the field all of the time, you could easily miss them. However, there are many updates that could benefit your business if you only knew about them!

A personal accountant is someone who can guide and counsel you on major financial decisions. In addition, they can also keep you up-to-date on all of the industry trends you need to know about as a business leader. This means you always have instant access to an expert in the field, even if you’re far from an expert yourself.

Along the way, if you have any questions about a particular form, clause or jargon, they’re there to clear up any confusion. Instead of spinning your wheels and draining your resources trying to understand legalities that are outside of your wheelhouse, you can communicate with an industry pro who knows exactly what you need.

Hire a Personal Accountant and Breathe Easier Today

As a busy business leader, you’ve already got enough on your shoulders. You shouldn’t have to feel weighed down with the responsibility of keeping your operations running at top capacity, making sure your employees have what they need, interfacing with partners and clients, and handling all of your own accounting.

Instead of trying to balance it all, consider letting a personal accountant take over for you.

Freed of that task, you’re able to devote more time to your true passion: the business that made you money in the first place. Hop online and research your local options, taking into account client reviews and feedback to find an accountant that meets your needs.

Need more financial advice that you can trust? That’s why we’re here.

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