Some signs that your small business needs an Accountant

During the early phases of a company's lifespan, important people of the business, especially the owner, may be required to wear multiple hats. Depending on the needs of the company, you could be the CEO, secretary, salesman, accountant, or even an intern on any given day.
While this balancing act may succeed at first, it will become unsustainable as the company grows. Taxes and financial planning, for example, become substantially more complicated and time-consuming, especially if you work in an area with strict regulatory or compliance requirements.
To that end, every expanding business eventually reaches the point when hiring an accountant in Melbourne is a must. How do you know when it's time to hire an accountant, though? Paying attention to the indicators is a good way to start.

·       Bookkeeping needs much time

Your time as a business owner is limited. You can't afford to be pushed in a million different directions forever. It becomes prohibitively expensive to spend your time and energy on things that aren't a suitable fit for your skillset like bank reconciliations. Transactions become more sophisticated as the company's revenue grows.

Consider all of the things an accountant could do that would likely take up a lot of time each week, such as:

·         Responsibility of regular transactions

·         Variance analysis and cost accounting

·         General ledger maintenance

·         Preparation of financial statement

·         Cash Management and treasury that includes bank reconciliations

·         Fixed asset accounting and payroll

·       Tax Season

If you've ever got a huge refund or owing a big amount in back taxes, these are red signals indicating you're not properly addressing your business taxes.

As a result, even for experts who are familiar with the complexities and nuances of tax rules, rules, and regulations, tax season may be one of the most stressful periods of the year. However, if you're in charge of making sure your finances are in order, you can feel completely out of your element.

It only takes one blunder to get you into trouble with the ATO. Even minor blunders and oversights can result in a penalty from the ATO. Simply not comprehending the regulations could result in you missing out on deductions or business credits that could decrease your tax liability.

By hiring an accountant, you could have someone capable of:

• Tax planning
• Personal tax planning
• Compiling and submitting taxes
• Filing financial reports and paperwork to IRS
• Ensuring you maximize your deductions and credits

Even though the accountant's hourly pay is higher than yours, the small business accountants complete the work in a fraction of the time and with more accuracy.

·       Planning for out of state expansion

There will be new rules and regulations governing your firm and its taxes as soon as it leaves the protection of its existing state. You'll most likely encounter the following things during this expansion:

·         Hiring new employees

·         Opening a new location

·         Doing the business across the state 

If that's the case, an accountant can make sure you're following all of the state's income, sales, and payroll tax reporting regulations. They can also go over your papers and look for any incentives you may have overlooked.

·       Other Situations

There are some situations in which hiring an accountant becomes crucial includes:

At the time of Audit

You'll need taxation accountants if you're being audited. Even if the ATO sends you a simple request for more information about your tax returns, you should engage a professional. Accountants are familiar with dealing with the ATO and can guarantee that you act appropriately to address the problem. You may find yourself in hot water if you handle it on your own and make a mistake.

Unusual Scenarios

Personal matters might sometimes have an impact on the destiny of your company. For example, if a business partner leaves or if the firm is deemed a marital asset in the event of a divorce, both of these events could alter the trajectory of a company. An accountant may assist with tax planning, business structures, estimating the value of a firm, and preparing financial documents for a sale.

Taking out a business loan 

 An accountant can assist you in determining whether or not taking out a loan is in line with your business goals. If this is the case, they can advise on the optimal loan structure, amount, and payment plan while providing the required financial statements.

·       Assistance with financial reporting

Is your firm at a point where it's time to bring in more capital? If that's the case, the financial records of your company will be crucial in the investor pitch and decision-making process. For your P&L, balance sheet, and cash flow statements, you need reliable reports.

An accountant can quickly prepare the documents, ensuring that they are accurate and include all pertinent information. As a result, you position your company for success and raise the possibility that outside investors will be ready to put their money into it.

Additionally, once you have enlisted funding, you will need to create financial accounts and reports on a regular basis to present with your stakeholders.

We are the best accountants that your business needs

 With Reliable Melbourne Accountants, you can choose the ideal accountant for your company— one who has the relevant industry experience and accounting expertise.

We have the solutions your business requires to flourish, whether you need a single accountant or an accounting team. We ensure you that we are the best result of your search “best tax accountant near me”.

Contact us today to see how we can help!