Ignore the warning signs at your own peril. Running a business is hard enough; running a business while managing your financial information, payroll, and taxes at the same time is practically a Herculean effort. Your business may be at a point where you need outside help to stay on the right track with your accounting. And if you don’t get that help now, you could end up literally paying for that mistake later.
At Hacker Accounting, we know how important it is for small businesses to get the bookkeeping and accounting work they need done with the utmost care and attention to detail. If you’re wondering if you need help, take a look at these five red flags that show you need an accountant. How many of them do you see twisting in the wind?
Finances Take Up Too Much Time
How much time do you spend dealing with your finances? It may be too much. Keeping accurate and up to date records of all your transactions, invoices, profits, and losses while also dealing with payroll and taxes can be a full-time job on its own. And as your business grows and expands, that means even more financial information that needs to be recorded and managed!
You could be spending so much time staying on top of your books that you won’t have enough time left to devote to growing and managing your business. This is where an accountant really comes in handy. They can take care of these important duties so that you can be free to focus on dealing with your business.
You’re Facing An Audit
Few things say “You need help and you need it NOW” like getting your business audited. Trying to handle an audit without an accountant is an extremely stressful experience. An accountant can help you deal with the audit by offering counsel and working with the IRS to find an amenable solution. They can also help you in the future by filing tax returns in the first place that are complete, accurate, and will hold up to the strict scrutiny of the IRS.
You’re Growing Fast
A growing business is a mixed blessing. On the one hand it shows that your business is healthy. You’re reaping greater profits, and your place in the world is expanding. On the other hand it means you’ll have even more behind the scenes work you’ll need to do to keep track of everything. Your business could be growing to the point where it will be almost impossible for you to stay on top of your own bookkeeping. You know the expression “Jack of all trades, master of none?” You don’t want to put yourself in the position where you’re doing your own finances and running a business and not doing either to the best of your ability.
Your Revenue Is Increasing… But Your Profit Isn’t
A major red flag is if your business is selling more than it ever has, but you AREN’T seeing a higher profit. What’s wrong with this picture? An accountant could tell you what’s wrong by taking an objective look at your overhead costs. They can point out areas where you can cut costs or make other adjustments to increase your profit margins.
You Don’t Know What You’re Doing
Accounting is a world full of jargon, complicating paperwork, and crucial details that are easy to miss. The more complex your business gets, the more complex your finances. It can be very easy to make mistakes while accounting if you aren’t well-versed in the field. And these mistakes could be costly. The tax penalties that the IRS could levy against your business could be ruinous. If you find yourself feeling confused and unsure while doing accounting, it could be a sign that you are out of your depth. You may need the guidance of an expert.
Related: 5 Misconceptions about Tax Season
If you got problems, we got solutions. Take down those red flags and let Hacker Accounting help you out. Give us a call at 602-375-5251.