As a small business owner, keeping overhead costs to a minimum may be top priority. So, when it comes to accounting issues, it may be tempting to tackle the job on your own rather then spending precious capital on hiring a professional accountant to do the job.
But is this really a wise move or could you possibly end up losing more than you gain?
The following are some questions that small business owners should ask themselves to determine if they should hire an accountant:
- Are you really saving money by doing your own bookkeeping? How much time and resources are being put aside to do the job on your own?
- Do you need professional help in establishing your accounting systems for quarterly and year-end reports?
- Will you need to complete year-end paperwork for your business, such as W-2 and 1099 forms?
- Are you aware of what taxes you are obligated to pay and when they are due?
- Do you need professional help for company payroll?
- Do you know what expenses are tax deductible?
- Do you know how to separate personal expenses and business expenses for tax purposes?
- Do you understand financial statements?
- Do you know what health insurance is best for you and your employees?
- How difficult and time consuming is it for you to remain informed regarding tax law changes?
If you decide in the end to take professional accounting help, it does not mean that you should dump all the accounting matters on an accountant and walk away – it always pays to be well informed about your business’ cash flow, tax obligations, and overall financial health. Although accounting functions generally get easier the longer you are in business, take a good look at the questions above and consider whether it is really worth the time and hassle to deal with your own accounting.