As the owner of your own small business, you may have been able to successfully manage your own money thanks to software programs, such as Quickbooks, even with a lack of financial experience. However, there may come a time when this lack of experience hurts you, such as when your business really starts to grow. When this happens, it may be time to turn to an expert in accounting. Here are five signs that you should consider reaching out to a professional:
1. Your Business Is Growing at a Rapid Pace.
It's a good thing when your business is growing because it means more profit. However, as the business grows, it means that you are going to be dealing with more customers, needing to bring in more employees, finding more vendors, filling out more paperwork, crunching more numbers, and more. In other words, it is a lot more work on your plate. It can quickly become impractical for you to manage everything on your own. An accountant can provide assistance by taking on some of these tasks for you.
2. Your Sales Are Increasing, But Your Profit Is Remaining Steady.
If you have been seeing a steady increase in your sales, you would expect to see an increase in your profit. Instead, you're not. Your profit isn't increasing at all. You have looked over your books and can't figure out what's going on. A professional accountant can take an unbiased look at your expenses to determine what adjustments can be made to help give a boost to your profit margins so that you can finally get that profit increase that you have been hoping for.
3. You're Not Creating Your Financial Statements Each Period.
Financial statements are an integral part of the accounting cycle. Many small business owners, especially those who not familiar with the accounting process, may overlook these financial statements and not create them at the end of each accounting period. This is a mistake if you intend on pursuing investors or asking the bank for a loan for a business expansion, as they'll want to see these financial reports. An accountant can help create these reports and ensure they contain all the data that they should from your books, are performed in the correct order, and are 100 percent accurate.
A professional accountant can be an invaluable ally to your company, especially if you don't have a financial background yourself or if you have found yourself overwhelmed with company growth. If nothing else, consider reaching out to an accounting firm like Teri J Henderson, CPA, P.A. for a sit down meeting to discuss how they may be able to make your life easier.
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