Running a small business means wearing a lot of hats. In the beginning, you might have handled everything from daily operations to balancing the books. But as your business grows, so do its financial complexities.
But at some point, you may begin to sense that things are off—an inkling that something’s wrong but not entirely sure what...
Here are some clear signs that it’s time to consider partnering with a small business accountant.
1. You Get Hit with a Huge Tax Bill
One of the biggest wake-up calls for small business owners is when they’re hit with an unexpectedly large tax bill. That first time you owe $20,000, $30,000, or even more in taxes can be terrifying. Suddenly, you’re left wondering, "What did I miss?" or "If I keep growing, will this bill double next year?"
At that point, you may realize the way you've been doing things isn’t enough to handle the next stage of growth. A small business accountant can help make sure you’re taking the right steps to manage these tax obligations, whether it’s keeping your books accurate, tracking revenue properly, or making sure all your expenses are in the right place.
So, while you may pay more in taxes as your business grows (which is a good sign of success!), you won’t be caught off guard by a huge bill you weren’t prepared for.
2. You’re Investing In Your Business
As your business expands, you’ll likely face the need to invest in new equipment, property, or inventory. Whether it’s applying for an SBA loan, a line of credit, or another form of business financing, banks will require detailed financial documentation to assess whether you qualify.
If you’ve been managing your books informally or using a patchwork of software, this process can quickly become overwhelming.
Imagine trying to buy a new building or even get a line of credit with unclear financials—if your books are messy, it could jeopardize your ability to grow.
Lenders want to see accurate financial statements, balance sheets, cash flow projections, and proof that your business is a safe bet. A small business accountant can step in and organize your financial data so you can present a solid case for why your business deserves funding.
3. You Receive Notices from the IRS or the State
Few things scare a small business owner more than receiving a notice from the IRS or state tax authorities.
These letters can be intimidating, filled with legal and financial jargon that leaves you wondering what went wrong. Is it a mistake? Did you miss a deadline? Are your filings incorrect?
The fear is real and justified.
Whether it’s a filing mistake or a missed deadline, a small business accountant can step in, review the notice, and help you understand exactly what’s going on. They’ll also help fix the underlying issue, so you don’t continue to receive these notices in the future.
It can be a huge relief knowing someone is handling these notices and keeping your business compliant moving forward.
4. You’re Adding a New Location
Growth is exciting! But change is often scary.
One of the biggest concerns business owners face when expanding is the fear of losing control over operations and the numbers. If you’ve been heavily involved in the day-to-day operations of your first location, you know the business inside and out.
But once you open another location, you can’t be in two places at once.
When you’re no longer able to oversee every detail personally, managing financials becomes even more complicated. Are both locations profitable? How are expenses being tracked between them? Are payroll and inventory accounted for properly across multiple sites? These are questions that become harder to answer as your business grows.
Your Financial Needs Are Becoming More Complicated
When you were smaller, tracking revenue and expenses might have been straightforward. But as you start adding things like new equipment (which needs to be depreciated), expanded payroll (with benefits like health insurance), or other financial elements, it can quickly get out of hand.
Even small missteps—like placing expenses in the wrong category—can have significant consequences down the line, particularly when it comes to filing taxes. For example, if you don’t account for depreciation correctly, it can affect your tax liabilities. Or if payroll isn’t tracked properly, you could miss out on tax deductions.
A small business accountant brings the expertise needed to handle these complexities. They’ll make sure your bookkeeping is accurate and up-to-date, and that you’re not overlooking anything that could cost you money later. Their attention to detail helps avoid problems and ensures your financials are always in good shape when tax season comes around.
Don’t Wait Until You’re in Over Your Head
Too many business owners hold off on getting professional help until something goes wrong. But waiting until you’re in over your head can end up costing you more in the long run.
Hiring an accountant isn’t just about fixing problems. It’s about setting your business up for profitable growth.
Whether it’s making sure your bookkeeping is accurate, helping you get a loan, or simply giving you peace of mind that everything is in the right place, a small business accountant can make all the difference.
If any of these triggers—big tax bills, needing a loan, or expanding to a new location—are ringing a bell for you, it’s time to bring in some help so you can get back to working ON your business, not IN it.
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