Are you struggling with your finances, receipts, payments, and reporting?
Running a business successfully is no small feat. You may be overwhelmed with day-to-day tasks even using a virtual bookkeeping service. It could be the perfect time to bring on a business accountant to help keep your financial ship in order.
Are you undecided as to whether or not you should hire an accountant in the first place?
Revisit these pros and cons to help you decide if a qualified accountant is right for your business.
Types of Business Accountants
There are many different types of business accountants. Here are a few of the most common types of business accountants:
Certified Public Accountants
CPAs are licensed accountants, and they are the most qualified to provide auditing, tax, and other financial services to businesses.
Enrolled Agents
The IRS licenses EAs to provide tax services to businesses. They are not as extensively trained as CPAs, but they are more affordable.
Bookkeepers
Bookkeepers are responsible for tracking and recording all of a business’s financial transactions. They are usually less expensive, but their services are also more limited.
The Pros
The pros of hiring a business accountant include the peace of mind that comes with knowing your finances are in good hands and their potential to save you money through tax breaks and other financial strategies.
They can also provide many benefits, from improved financial accuracy to better decision-making.
The Cons
The main con of hiring a business accountant is their potential to commit fraud. This is a significant risk for any business, but it is difficult for small companies that may not have the resources to recover from such a loss.
Another con is the potential for conflict of interest if the accountant is also working for another business in the same industry. This could lead to them giving preferential treatment to their other client, which could be detrimental to your business.
An accountant for business can be expensive. If you are not careful, you could pay more than you need to.
Factors to Consider When Hiring an Accountant
The most crucial factor is the size and financial stability of your company. If your company is small and not yet profitable, hiring a business accountant may not be necessary. However, if your company grows and has complex financial needs, a business accountant can be a valuable asset.
Other factors to consider include the type of accounting software you use, company accounting procedures, and budget.
Do you currently need accounting software for your business? Check the spend management software here.
Hiring a Business Accountant – Is It Right for Your Business?
Hiring a business accountant is a decision that should be made based on the specific needs of your business.
So, what do you think? Is hiring a business accountant the right move for your small business? Weigh.
Look through our blog posts today to discover more helpful business insights.