Should you hire an accountant? Here’s a guide to help you decide if now is the right time to hire an accountant.

1. SHOULD
YOU HIRE AN
ACCOUNTANT?
Your business is going full-steam ahead, and you’re thinking about hiring someone to help with the
books. Here’s a guide to help you decide if now is the right time to hire an accountant.
Ask yourself:
Given my level of expertise and the time it currently takes,
is the bookkeeping workload becoming too much for me to handle?
Why do you need help, anyway?
If you've started a new business and are unsure of any of the
following, it might save you time and headache to hire help.
Account
Charts
Accounts
Payable/Receivable
Deposits
Customer
Payments
Bank
Reconciliation
Invoices
THE TASK AT HAND
What exactly does an accountant do?
An Accountant
Analyzes the financial
big picture and offers
strategic advice.
Performs day-to-day,
hands-on tasks: handling
new hire paperwork and
payroll, paying bills,
submitting invoices, etc.
Produces key financial
documents and can help
file company taxes.
Tracks company
expenses to ensure
every cost is recorded
correctly for taxes.
Can be outsourced as
a chief financial officer
after tax season, to
advise on financial
strategies.
Benefits of Hiring an Accountant
Advisor on
Growth
Opportunities
Receipt
Maintenance
Accurate Books
Credibility
10 hours later
Time Savings
(More time for you
to dedicate to your
business!)
Account Bank
Statement
Reconciliation
Most small-business owners spend 10 hours a
week balancing their own books. This time
takes away from the actual business, which
doesn’t result in new revenue for the company.
ARE YOU READY TO HIRE?
Before hiring an accountant, consider the following questions:
Do I have the time to
learn and manage the
bookkeeping system?
Is my time best spent
managing the
bookkeeping system?
Am I able to keep up-to-date
on new tax laws in order to
avoid legal troubles?
If you answer “no” to any of these questions, it might be time to hire an accountant.
When Should You Stop Doing Your Bookkeeping?
1.
LACK OF TIME
2.
If bookkeeping is done
incorrectly, the costs of late
fees, interest, and penalties
can really add up.
If you’re trying to juggle sales,
marketing, shipping, and
bookkeeping all at once,
something is going to suffer.
Effective time management is key
for entrepreneurs—especially when
you’re your only employee. Think
of the time spent bookkeeping as
time you could spend drawing in
additional sales. The efficiency of
hiring a bookkeeper could end up
saving money in the long run.
$100$275
per hour
LACK OF KNOWLEDGE
Zzz....
3.
LACK OF INTEREST
Bookkeeping is not for everyone. You
have to love working with numbers.
So, if crunching numbers puts you
asleep, it may be hard to find the
motivation to keep up with it.
According to Entrepreneur, most accounting firms charge
by the hour—ranging from $100 to $275 per hour.
However, some work on a monthly retainer. It’s important
to not base your decision solely on cost, as accountants
who charge more will likely have more experience.
FINDING THE RIGHT FIT
There are different options to consider when seeking accounting services for your business.
Should you bring someone into the office or outsource someone?
WHEN YOU OUTSOURCE:
per hour
VS.
Flat Rate
Set an hourly fee or overall rate
that occurs weekly, biweekly, or
monthly. This will depend on
the size of your business and
bookkeeping needs.
Communicate electronically
with the contractor, who
will electronically deliver
accounting documents and
reports.
Save paper. With the
exception of the occasional
need to print reports, you
should be able to review and
edit documents electronically.
HIRE IN-HOUSE IF:
1,000,000.00
MON
TUES
WED
IN OFFICE
Your revenue reaches the $1
million mark, or you have 30
employees.
SOURCES:
SMALLBUSINESS.CHRON.COM, ENTREPRENEUR
You call your accountant so
frequently that you wish he or
she was in the office at all times.
Your part-time bookkeeper
spends 3 full days in the office
but continues to fall behind
the workload.