If you own a small business, chances are you try to save on expenses as much as possible, and this can mean handling your own taxes or accounting rather than hiring someone else to do it. While this is fine, it may not be in the best interests of your business.
Remember that an accountant can help you with more than just filing your tax returns; they can help you to make adjustments in how you do business so that you have a smaller tax bill every year, and ensure you know all the tax laws that apply to your company. They can also make suggestions for how you manage your business to increase your profits.
Note a few signs that you need an accountant for your small business.
1. If you're doing more business but not seeing more profit
When your revenue increases, your profits should also increase accordingly. If not, chances are you're spending too much on overhead or supplies, or even personnel that you think is needed to support your increase in business. An accountant can review your financial statements and everything related to your purchasing as well as personnel costs, and make suggestions for how you can increase your profit margin as your revenue increases.
2. You want to expand into a different state, and especially a different country
Tax codes can be very different between states or provinces, and of course between countries. Overhead costs can also be very different, and in turn, you will need to consider your pricing strategy. You also need to ensure you understand everything needed to know about sales tax in different areas. Before you expand, consult with an accountant so you can create a strategy that will mean maximum profit with your expansion.
3. You're spending too much time on accounting, or don't understand accounting and taxes
As a business owner, you need to hire personnel to handle tasks that take you away from more important responsibilities, and for those that are outside your area of expertise. Remember that every hour you spend on figuring the accounting paperwork or preparing financial statements for your company is an hour away from servicing your customers or clients, from researching new product lines, and so on.
If you're unfamiliar with accounting and taxes, you can also be making simple but very expensive mistakes. Failing to depreciate certain items or claiming them on your taxes can mean facing a larger tax bill every year, whereas an accountant can help you throughout the year so that your taxes are as low as possible at year's end. Learn more about your options by contacting resources like CMA Chartered Accountants.