Should You Hire An Accountant?

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Should you hire an accountant? Here’s a guide to help you decide if now is the right time to hire an accountant.

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Should You Hire An Accountant?

  1. 1. SHOULD YOU HIRE AN ACCOUNTANT? Your business is going full-steam ahead, and you’re thinking about hiring someone to help with the books. Here’s a guide to help you decide if now is the right time to hire an accountant. Ask yourself: Given my level of expertise and the time it currently takes, is the bookkeeping workload becoming too much for me to handle? Why do you need help, anyway? If you've started a new business and are unsure of any of the following, it might save you time and headache to hire help. Account Charts Accounts Payable/Receivable Deposits Customer Payments Bank Reconciliation Invoices THE TASK AT HAND What exactly does an accountant do? An Accountant Analyzes the financial big picture and offers strategic advice. Performs day-to-day, hands-on tasks: handling new hire paperwork and payroll, paying bills, submitting invoices, etc. Produces key financial documents and can help file company taxes. Tracks company expenses to ensure every cost is recorded correctly for taxes. Can be outsourced as a chief financial officer after tax season, to advise on financial strategies. Benefits of Hiring an Accountant Advisor on Growth Opportunities Receipt Maintenance Accurate Books Credibility 10 hours later Time Savings (More time for you to dedicate to your business!) Account Bank Statement Reconciliation Most small-business owners spend 10 hours a week balancing their own books. This time takes away from the actual business, which doesn’t result in new revenue for the company. ARE YOU READY TO HIRE? Before hiring an accountant, consider the following questions: Do I have the time to learn and manage the bookkeeping system? Is my time best spent managing the bookkeeping system? Am I able to keep up-to-date on new tax laws in order to avoid legal troubles? If you answer “no” to any of these questions, it might be time to hire an accountant. When Should You Stop Doing Your Bookkeeping? 1. LACK OF TIME 2. If bookkeeping is done incorrectly, the costs of late fees, interest, and penalties can really add up. If you’re trying to juggle sales, marketing, shipping, and bookkeeping all at once, something is going to suffer. Effective time management is key for entrepreneurs—especially when you’re your only employee. Think of the time spent bookkeeping as time you could spend drawing in additional sales. The efficiency of hiring a bookkeeper could end up saving money in the long run. $100$275 per hour LACK OF KNOWLEDGE Zzz.... 3. LACK OF INTEREST Bookkeeping is not for everyone. You have to love working with numbers. So, if crunching numbers puts you asleep, it may be hard to find the motivation to keep up with it. According to Entrepreneur, most accounting firms charge by the hour—ranging from $100 to $275 per hour. However, some work on a monthly retainer. It’s important to not base your decision solely on cost, as accountants who charge more will likely have more experience. FINDING THE RIGHT FIT There are different options to consider when seeking accounting services for your business. Should you bring someone into the office or outsource someone? WHEN YOU OUTSOURCE: per hour VS. Flat Rate Set an hourly fee or overall rate that occurs weekly, biweekly, or monthly. This will depend on the size of your business and bookkeeping needs. Communicate electronically with the contractor, who will electronically deliver accounting documents and reports. Save paper. With the exception of the occasional need to print reports, you should be able to review and edit documents electronically. HIRE IN-HOUSE IF: 1,000,000.00 MON TUES WED IN OFFICE Your revenue reaches the $1 million mark, or you have 30 employees. SOURCES: SMALLBUSINESS.CHRON.COM, ENTREPRENEUR You call your accountant so frequently that you wish he or she was in the office at all times. Your part-time bookkeeper spends 3 full days in the office but continues to fall behind the workload.

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