Nobody knows your business better than you. It’s your baby, your brain-child, since day one you’ve put in the hours and you’ve made it is what it is today, so why do you need somebody else to come in and manage the money? Well, to put it simply, accounting is difficult. With so many different aspects of finances to concern yourself with, it can become impossible to manage both an active business and keep the money in check. If you are currently doing your own accounting, make sure you look out for these warning signs:
Tax Seasons Fill You With Dread
Despite what The Simpsons would have you believe, the IRS is not some kind of maniacal, totalitarian unit of government espionage that is out to ruin the lives of as many people as possible. Instead, they are simply a service that exists to stop illegal and fraudulent activity. Therefore, if you haven’t committed any wrong-doings, you have no reason to fear the taxman. While you probably already know this, you still fear them.
The most likely reason for your fear is that you don’t know what you are doing when it comes to your finances and you are afraid you’ll slip up, landing yourself under investigation for some inane mistake. It may be you aren’t good at bookkeeping, that you don’t understand the financial jargon or you aren’t sure on what you can claim under expenses, but whatever the reason, by the time tax season rolls around, the nights get longer and are filled will more worries of tax than sleep.
If you feel like this, then the answer is simple. You don’t know what you are doing, as if you did, you’d have nothing to fear. Now, while you needn’t fear the taxman ordinarily, you may just need to if you are making mistakes, because however innocent mistakes are, they can appear dishonest or illegal. To avoid the fear and reduce the chances of making serious mistakes, get an expert in. They’ll ensure you keep your sleep and stay on the good side of the IRS.
You’re Losing Valuable Time
As a business owner myself, I understand that there is never enough time for everything. With so many responsibilities to juggle, as well as trying to make time for a personal life and loved ones, there simply aren’t enough hours in the day. But, unfortunately, finances are an unshakable responsibility that comes hand in hand with self-employment. Bookkeeping, going over records and receipts, filling out forms and all the other tasks can take hours or even days out of your monthly schedule.
If you have time to undertake these without cutting into your working hours then really, there’s no issue. However, if time spent on your accounting is taking over time that you need to be dedicating to your business, or your finances are getting overlooked because you don’t have time for them, you’re going to run into trouble sooner or later. Something will suffer as a result of your lack of free time. Better to outsource your accounting to an expert, rather than face the issues posed by failing to pay enough attention to the important aspects of your business.
Your Business Is Growing Quickly
Its exciting, and hugely gratifying, to see your business expand. Getting swept up in the pageantry of growth, perhaps acquiring new staff, clients or work space, is something we all dream of when we begin our business and is definitely not something we are going to let pass us by while it’s happening. However, with all the great things that growth brings comes a problem. Finances that were once easily balanced before, such as simple pay-ins from a handful of clients with a small amount of expenditures now becomes something more complex and evolved. Different types of income and tax may come into play, expenditure may change and with the hiring of employees comes a whole new set of rules. If you experience sudden growth or are struggling to deal with managing the finances of a business that has recently seen growth, then get an accountant in to ensure you don’t fall behind and maintain a bright and healthy financial future. One that could seen even more growth.