At some point, small business owners will have to encounter the question of whether or not they should hire an accountant. The most common reason for most business owners to have an accountant or a bookkeeper on board is so that they don’t have to deal with cumbersome tasks themselves - tax preparation, in particular. However, an accountant is capable of more than just assisting you with statutory reporting. This article will tell you what hiring an accountant will mean for your business so that you can come to the conclusion of whether or not you should take the plunge and employ one.

The Main Accounting Tasks

Having a good accounting and bookkeeping system in place is imperative for the effective management of your company’s cash. When it comes to finances, all areas of your business operation are affected. Therefore, you have to make sure that all the core accounting tasks are being carried out properly. These main tasks include:

 Setting Up the System

There needs to be a system in place to ensure that all transactions are being tracked. Depending on your business, you can choose between spreadsheets, a notebook, or accounting software.

Recording Transaction Data

Having all the transaction data recorded in the system is required for all businesses. Transactions may include expenses on materials, office supplies, insurance, rental, employee compensation and benefits, and so on.

Reporting Results

Financial reports that cover actual results and the forecast for future results need to be taken into account as well. For example, reports may cover total sales, financial statements, and tax reports, among others.

So, Do I Need An Accountant?

After considering these essential accounting tasks, you should be able to come to a conclusion whether you can manage these tasks on your own. Keep in mind that every business is different, and what works for other companies might not work for you. If you have just started your company and have a pretty good idea of the basic accounting tasks, then you might be able to handle these things on your own. However, if your company starts to expand and you find that you don’t have enough time to juggle your finances and run a business, then hiring an accountant is a good idea.

When it comes to making a decision of hiring an accountant, it all boils down to your company’s needs and the type of your business. An accountant may be suitable for growing companies that have over six-figure sales while a bookkeeper is more suitable for small companies that only need help with basic accounting tasks.