Do I Really Need an Accountant?

Do I Really Need an Accountant?
Caitlyn Rose
on February 29, 2016
Read in 2 min

As a business owner, there are many moving parts involved in keeping your doors open. Some may be creative, fulfilling tasks which you enjoy… others, not so much. It’s fair to say that, for most small business owners, accounting is a chore.

Perhaps you’ve been managing your finances on your own until now; you wouldn’t be the only one. By handling accounting yourself, you save the cost of hiring someone else to do it. Not to mention, no one knows the ins and outs of your business like you do.

Still, if you’re considering hiring an accountant to help manage your business finances, consider these points:

Time Is Finite

With growth comes more transactions in an enterprise. The implication here is the greater number of transactions, the more time is consumed by bookkeeping.

As a result, you may find the time you spend on bookkeeping causes you to neglect more important business operations. Having an accountant will free up your time to concentrate on key business operations.

Accounting Is A Complex Practice

Accounting is a field with many rules and principles. You might not understand some concepts in accounting for your business. Every transaction in accounting has a special treatment whether it is tax exempt, tax deductible, etc.

With the growth of the business, the volume of transactions will increase and become more complex. In addition, legal changes can impact your accounting practices at any time.

Mistakes Can Be Costly

When a business expands, a lot of activities are involved in coping with the rise in demand. The growth of an enterprise is an exciting phase, but it comes with added responsibilities that will challenge your limited time.

Authorities might require audited files from your enterprise to investigate compliance. In this case, the authorities have experts to establish errors you might have made in filing returns. When they detect fraud, be it intentional or unintentional, you can face penalties or legal action.

There is a possibility you will lose track of financial management or outstanding business loans as your business grows. As your business expands, and demands on your time increase, there are more and more chances for you to make a costly mistake.

Put Your Energy into the Expansion of Your Business

Bookkeeping is a time-consuming and continuous process. It is not a regular activity but rather an ongoing one. It is a process that requires accuracy while checking tax implications as well as the financial performance of the business.

Whether you outsource accounting services or hire an accounting expert to join your team in-house, an accountant will help you navigate the complicated world of business finance, business taxes, and other accounting chores.

In conclusion, we leave you with this:

Most business owners can get away with managing their business accounting records on their own, up to a certain point. 

Businesses of a certain size, businesses experiencing a growth phase, and/or businesses aspiring to scale sometime in the near future will need a the help of a skilled accountant to keep them out of legal trouble and to keep their accounts in good standing.

Caitlyn Rose Finance Journalist

Caitlyn is a business consultant and writer with an intimate understanding of business finance.

An entrepreneur at heart, she supports small local businesses whenever she can.

Recommended for Business Loans
Lendio
Lending Express

Important Disclosures. Please Read Carefully.

Persons facing serious financial difficulties should consider other alternatives or should seek out professional financial advice. This website is not an offer to lend. Lendgenius.com is not a lender or lending partner and does not make loan or credit decisions. Lendgenius.com connects interested persons with a lender or lending partner from its network of approved lenders and lending partners. Lendgenius.com does not control and is not responsible for the actions or inactions of any lender or lending partner, is not an agent, representative or broker of any lender or lending partner, and does not endorse any lender or lending partner. Lendgenius.com receives compensation from its lenders and lending partners, often based on a ping-tree model similar to Google AdWords where the highest available bidder is connected to the consumer. Regardless, Lendgenius.com’s service is always free to you. This service is not available in all states. If you request to connect with a lender or lending partner in a particular state where such loans are prohibited, or in a location where Lendgenius.com does not have an available lender or lending partner, you will not be connected to a lender or lending partner. You are urged to read and understand the terms of any loan offered by any lender or lending partner, and to reject any particular loan offer that you cannot afford to repay or that includes terms that are not acceptable to you. By submitting your information via this website, you are authorizing Lendgenius.com and/or lenders and lending partners in its network or other intermediaries to do a credit check, which may include verifying your social security number, driver license number or other identification, and a review of your creditworthiness. Credit checks are usually performed by one of the major credit bureaus such as Experian, Equifax and Trans Union, but also may include alternative credit bureaus such as Teletrack, DP Bureau or others. You also authorize Lendgenius.com to share your information and credit history with its network of approved lenders and lending partners. For qualified consumers, our lenders offer loans with an Annual Percentage Rate (APR) of 35.99% and below. For qualified consumers, the maximum APR (including the interest rates plus fees and other costs) is 35.99%. All loans are subject to the lender’s approval based on its own unique underwriting criteria. Example: Loan Amount: $4,300.00, Annual Percentage Rate: 35.99%. Number of Monthly Payments: 30. Monthly Payment Amount: $219.36. Total Amount Payable: $6,581.78 Loans include a minimum repayment plan of 12 months and a maximum repayment plan of 30 months. In some cases, you may be given the option of obtaining a loan from a tribal lender. Tribal lenders are subject to tribal and certain federal laws while being immune from state law including usury caps. If you are connected to a tribal lender, please understand that the tribal lender’s rates and fees may be higher than state-licensed lenders. Additionally, tribal lenders may require you to agree to resolve any disputes in a tribal jurisdiction. You are urged to read and understand the terms of any loan offered by any lender, whether tribal or state-licensed, and to reject any particular loan offer that you cannot afford to repay or that includes terms that are not acceptable to you.

Lender’s or Lending Partner’s Disclosure of Terms.

The lenders and lending partners you are connected to will provide documents that contain all fees and rate information pertaining to the loan being offered, including any potential fees for late-payments and the rules under which you may be allowed (if permitted by applicable law) to refinance, renew or rollover your loan. Loan fees and interest rates are determined solely by the lender or lending partner based on the lender’s or lending partner’s internal policies, underwriting criteria and applicable law. Lendgenius.com has no knowledge of or control over the loan terms offered by a lender and lending partner. You are urged to read and understand the terms of any loan offered by any lenders and lending partners and to reject any particular loan offer that you cannot afford to repay or that includes terms that are not acceptable to you.

Late Payments Hurt Your Credit Score

Please be aware that missing a payment or making a late payment can negatively impact your credit score. To protect yourself and your credit history, make sure you only accept loan terms that you can afford to repay. If you cannot make a payment on time, you should contact your lenders and lending partners immediately and discuss how to handle late payments.