Growing Your Business

7 Signs You Probably Need an Accountant

by
Lee Reams II
on
10/20/2015
7 Signs You Probably Need an Accountant

Whether you are a single taxpayer or a business owner, managing your money correctly is key. When your paperwork is consistently out of order and you don't know the difference between a balance sheet and a checkbook, chances are you are headed for trouble. According to the Bureau of Labor Statistics, about 50% of start-up businesses fail within the first five years. A large part of this is due to lack of planning, poor management, and insufficient capital. It's always better to make the investment and use experts in the field rather than doing it yourself. If you don't know what you're doing and want to increase your odds of success, take heed to the 7 signs that indicate you probably need an accountant:

  • You don't know anything about accounting

There are a number of accounting programs on the market that can assist with keeping your books in order, but you don't know where to start because you have no clue what simple accounting terms are. An accountant can give you a crash course in accounting, just to get you up to speed on the transactions they handle for you. The rest of the time … leave it to a pro.

  • You can't balance your checkbook

One of the most important ways you keep track of what's coming in and going out is by balancing your checkbook. If your checkbook is always off, you could be setting yourself up for potential liability, or tax penalties.

  • Bookkeeping takes too much time

While running a business takes up a lot of time, keeping your books in order should be a priority. When you have so many things to do that you can't keep track of your revenues and expenses, it's time to call in an accountant.

  • You own and rent real estate

There are a number of tax implications associated with owning rental real estate. If you can't be bothered with keeping your books in order, being able to successfully maneuver your taxes will be difficult. An accountant will be able to put your paperwork in order and keep things in line to help you avoid any penalties, or a huge tax bill at the end of the year.

  • It takes days to complete your taxes

If you are scrambling to find receipts and get things together at the end of the year, or are consistently filing for extensions, your financial house is not in order. This is a clear indication that you are in financial peril when it comes to your bookkeeping, and calling an accountant to assist would be the wisest choice.

  • You owe the government a lot of money each year

One of the most obvious tell-tale signs that you probably need an accountant is the fact that you owe the government a lot of money every year. An accountant will be able to find loopholes and set your exemptions, taxes and other benefits up so you can enjoy the fruits of your labor, rather than giving it to the government.

  • You need paperwork for investors

As a business owner, at some point you may be in a position where you want to expand. When this occurs, you will need your financial statements and other documents that reflect the financial health of your company and why it would be a good choice to invest. Banks also need your most current financial statements and tax returns if you are considering getting a bank loan.

These are just 7 reasons why you probably need to hire an accountant to help get you through the financial haze. Being proactive in moving forward can save time, money and a lot of headaches. It's no fun losing money when you could be enjoying your profits or surplus income. Finding the right accountant that will meet your needs is worth it. Don't get caught in a situation where you get in trouble because of your taxes or other obligations to the government because you haven't kept your books in order. Assess your financial house – if you have at least three things on this list, it's time to call an accountant today!

share this post
Search for matches...
Lee Reams II

Lee Reams II

CEO

I am a tax and business news junkie who has spent the last 20 years developing and executing "best in class" word-of-mouth marketing campaigns for tax and accounting professionals. With TaxBuzz and CountingWorks we have taken that same commitment to quality content directly to the consumer. Keeping you up-to-date with the latest tax law changes, business growth tips and planning strategies to help you reach your best financial outcome.

Recommended Professionals

In the face of economic uncertainty, TaxBuzz is the industry's most up-to-date tax information.

Join 60,000 who get our weekly newsletter. No spam.

Need help selecting a firm?

Use our specialized search engine and get matched to the best accounting and tax firm for your needs.

Related Posts

Latest Posts