Do I Need an Accountant for My Small Business?

We get this question a lot! And the truth is, it totally depends! Every business is different - some require support, whilst others don't. 

So, to help you assess whether or not your business would benefit from hiring an accountant, we've outlined when you should hire an accountant, when you shouldn't hire an accountant, and what benefits you could gain from an accountant regardless of your business model. 

 Signs you should hire an accountant

Unfortunately, there is no universal answer as to whether you should hire an accountant. Some accounts are incredibly complex - others are relatively simple. Similarly, some solopreneurs are far more financially literate than others. So, the answer entirely depends on you and your business. 

With that said, here are some tell-tale signs that you should consider hiring an accountant:

You suffer from a lack of confidence or understanding.

If you're not confident managing your own accounts, we strongly suggest letting someone else do it for you. 

A professional accountant will ensure you're always compliant with the latest tax legislation and can help prevent any costly mistakes. 

You don't have the time.

Running a business is a time-consuming endeavour. (Especially if you're doing it alone.) So, if you're struggling to find the time to keep up with your books, you need to assess whether managing your accounts is the best use of your time and skillset.

 You want to expand your business. 

Successfully growing a business requires a solid business strategy. A professional accountant can help you develop the perfect business plan by eliminating unnecessary expenses and capitalising on your strengths. 

 The benefits of hiring an accountant

If you're still unsure whether hiring an accountant is worth the investment, here is a brief list detailing just a few of the benefits a professional accountant can bring to your business:

More time - instead of spending hours pouring over your books, you can re-invest that time into other parts of your business. 

Increased growth - 89% of small businesses attribute their increased success to their accountant.

 Reduced anxiety - you can rest assured knowing your accountant is taking care of your tax-related obligations. 

 Improved accuracy - kiss goodbye to costly mistakes or late penalties. 

 Maximal tax efficiency - now, who wouldn't want that?

 Increased cash flow - your accountant can help reduce your running costs whilst you focus on generating more income. 

But does everyone need an accountant? 

 Despite all the benefits you can gain from hiring an accountant, not every business needs one. There are certain circumstances where you can quite easily do without (assuming you have a complete understanding of your tax obligations). 

For example, you can get away without hiring an accountant if: 

 1. You’re a freelancer.

 If you only have a couple of clients to keep track of, monitoring your income and expenses should be pretty simple. However, you can streamline the process by downloading software like Quickbooks or Dext. 

 2. Your business is a hobby. 

 If you are only generating a small sum from your side hustle, you probably don't need to hire an accountant - just make sure to keep a spreadsheet of your income and expenses for your tax reports. 

3. Your tax situation is simple to manage.

If you are the sole proprietor of your business, you should also be able to navigate your bookkeeping without assistance. But again, this only applies if you feel confident enough to do so!

Be open to accepting help

 Not every small business needs an accountant, but every business could benefit from one. So, don’t limit your success by only hiring an accountant when it’s absolutely  necessary. Start taking advantage of the services they have to offer and watch your small business skyrocket!