There comes a time in many business owners lives’ when the need for an accountant outweighs the hefty cost. Hiring an accountant isn’t always cheap but sometimes it’s a necessary investment, especially if your business is growing rapidly.
Do you know if you’re ready to make the investment or can hiring an accountant wait a little longer?
Start-Ups And Small Businesses
If you’re a start-up or a very small business, then the short answer to ‘should I hire an accountant?’ is probably no. As an SME, you’re likely not earning all that much and chances are, you probably don’t have that much accounting to do. Accounting, in all its forms, can seem like an arduous process but unfortunately, it’s just another part of running your own business.
If you feel as if you’re drowning in accounting, rather than spending out big bucks on an accountant, read up on some simple techniques to get things like invoicing and tax calculations under control. Sometimes, the biggest task is actually allowing yourself time each week or month to ensure everything is where it should be.
Alternatively, there are cheaper ways to get a helping hand with some accounting tasks, rather than hiring someone to do it. Online accounting and invoicing software is often a much cheaper way to take some of the weight off your shoulders and is favoured by many successful and well run SMEs.
Part-Time And Ad Hoc
Did you know that you don’t have to hire an accountant full-time? Actually, you don’t even need to hire one part-time if you don’t want to, many accountants will freelance as a one-off or ad hoc throughout the year.
Many growing businesses find it useful to hire an accountant on a one-off or part-time basis during periods of transition. This could be a new loan application, a tax investigation or making the move to Ltd company status.
Transition periods are difficult for any size business, so if you’re a small company sometimes you just need to take the plunge and ask for help. Do your research and you’ll be able to find an accountant that can work to your needs, rather than the other way round.
Your business is growing at a rapid rate, you’re taking on new employees and you’re starting to work with an increasing number of clients. If this sounds like you, then it might be time to consider hiring an accountant full-time.
You might not be certain you can afford an accountant but ask yourself this: is taking care of my own accounting a good use of my time?
Consider how much you would pay yourself per hour and multiply that by the number of hours you expect to spend on your books. That sum is how much it is going to cost you to do your own accounting. Now, look at how much you would need to spend each month on an accountant.
If the figure is similar or even a little more to hire an accountant, then don’t hesitate to make the investment. You’ll save yourself time, you could save yourself money and an accountant is less likely to make costly errors.
So, Should You Hire An Accountant?
There are plenty of reasons to hire an accountant but being lazy isn’t one of them. Before you decide to spend out, ask yourself: am I making a good investment?