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As a small business, whether you are just starting out or have been around for a while, hiring an accountant is probably the very last thing on your mind. Most small businesses want to keep running costs to a minimum and that includes hiring only employees or services that are necessary. But you can’t be at that spot forever. There comes a time when hiring the services of NYC accountants is simply the smartest move to make.
At this point, failure to hire one might cost your business more than you are trying to save or even make running your organization a lot easier. Here are some signs that your business needs to start considering hiring an accountant.
If you know nothing about accounting: no matter how little, you need to know a bit about accounting or have someone on your team that does if you want to run a successful business. Basic knowledge of how to prepare a financial statement or reports for your investors are required to manage your finances effectively. If you lack this knowledge, then you should get someone that does before you get into too much of a mess
You are deciding the legal structure of your company: This is arguably one of the most important decisions you have to make with your business. No matter the legal structure, you decide for your business, you stand a better chance of making good decisions with an accountant by your side to explain the legal implications on your finances and that of your company.
You have no idea how to do your taxes: small businesses have to pay taxes too and this is best handled by a professional or someone with some knowledge and experience on how to do it right. Hiring a business accountant can potentially save you thousands of dollars on yearly taxes and keep you out of trouble with the IRS. You can read this basic guide for an overview of how taxation works for small businesses.
If your business is growing really fast: the saying “with great power comes great responsibility” can get more real than with fast-growing business. As your business grows, you will soon find out there is a lot more paperwork to do especially in the accounting department. You are better off with a professional crunching the numbers at this point. The success and continual growth of your entire business might depend on this.
If you need a loan: although you don’t really need an accountant to secure a business loan, you stand a better chance of getting one with an accountant. Lenders want to see detailed financial documents all of which can be better organized by an accountant. An accountant will also guide you on interest rates and the other terms and conditions of a loan offer so that you can make well informed decisions about this.
You are about to sell your business or make an acquisition: If you have gotten this far without an accountant, then you really deserve a lot of commendations. However, you will most likely need an accountant if you are planning to buy a new business or selling yours. In case of a sale, your buyers will want to see detailed financial records that will show prospective buyers just how valuable your business is. You will also get a better deal with a good accountant negotiating the deal.
On the other hand, if you are making an acquisition, an accountant is better positioned to look through the financial records of the company you are buying, value the company’s assets and find red flags that may affect the deal such as outstanding debts, fraudulent records and so on. The process of selling or buying a business requires a lot of planning and the deal is best handled by a professional.
You don’t always need an accountant right from the onset of a business, but as your company grows, you will most likely need to hire one eventually. At this point, knowing how to find the best NYC accountants is vital for the success of your company. Read this article https://www.dummies.com/business/accounting/how-to-hire-the-right-accountant-for-your-business/ for some tips on how to hire the right accountant for your business.