It’s almost impossible to run a start-up business without taking on a huge amount of responsibility. From day one, you’re trying to attract clients, close sales, and refine and perfect your products or services. And then there appears to be countless administrative tasks that keep your days and nights busy. Accounting and bookkeeping are among those, and lots of owners of start-up businesses end up staying up late to keep their books current. Especially in the early days, it may seem like a luxury to hire an accountant to take over these responsibilities, but is that really true?
We all know that any business needs to be constantly aware of their finances, and start-ups are no exception. A professional accountant can provide invaluable support in this regard. Even so, it’s difficult for a start-up business to justify any additional expenses. But not using the services of a professional accountant to set up and maintain your finances properly can actually cost you more than it does to hire one. So how do you know when it’s time to hire an accountant? Here are some points to consider to help you make the decision.
You’ve outgrown DIY accounting
In the start-up world, most business owners start by trying to do it all themselves to save money and help the business grow. This is understandable, but if you’re successful in your efforts to grow the business, the time will come when a DIY approach to accounting is no longer sufficient. Sooner or later, the workload becomes too great or the work itself becomes too complex for you to handle it on your own. At this point, it’s foolish to try to continue to handle it all on your own.
You’re out of your element in accounting
Though you want to do it all in the early days of your start-up business, if you’re not trained in accounting, you’re probably going to find yourself in over your head at some point. And let’s face it, while there are some areas of business administration in which you can afford to make a few mistakes now and then, accounting isn’t one of those. Even a small error in your books can have serious effects. Even a single business planning decisions based on inaccurate information, or made without skilled financial advice could potentially sink the business. The professional expertise and insight that you gain when you hire an accountant could determine the success of your business.
You’ve got better things to do with your time
Of course, when you’re running a start-up business, you’re not going to have any difficulty finding activities to fill up the hours in your day. In fact, it’s more likely that you’ll be looking for more hours than there are in the day. And when accounting and bookkeeping are taking you away from mission-critical jobs that no one can handle but you, it’s looking like it’s time to hire an accountant, and get that workload off your plate.