Accountants are one of the most valuable resources a business owner can have, but knowing when to hire one can feel tricky. The truth is, you should probably consider bringing one up from the very beginning.
For newer business owners, the phrase “you don’t know what you don’t know” couldn’t be more true. You might not need extensive accounting services right away, but getting help early on—especially with taxes and setting up systems—can save you a lot of trouble down the road.
When Bookkeeping Becomes a Burden
As your business grows, your financial needs become more complex. That’s when bookkeeping tends to shift from “manageable” to “overwhelming.” If you’re procrastinating on it, dreading the task, or simply too busy to keep up, it’s probably time to outsource.
Let’s be honest: your job as a business owner is to focus on what you’re passionate about and what you’re good at. Accounting isn’t what you signed up for, and it’s not what you should be spending your valuable time on. Handing off the bookkeeping to a professional allows you to do what you do best while letting the numbers take care of themselves in the background.
Accounting Is More Than Taxes
Many people think accountants are just for tax season, but that’s only one small piece of what we do. Accurate financial records are essential for understanding your business. Without them, you can’t know if you’re making money, losing money, or staying afloat.
For instance, if your accounts aren’t reconciled properly or your transactions are miscategorized, you could end up making decisions based on incorrect data. That’s a dangerous game to play when your business’s health is on the line. Accountants ensure everything is recorded accurately, giving you the clarity you need to make smart decisions.
Can Software Replace Accountants?
Many business owners ask: Can accounting software replace the need for an accountant? While tools like QuickBooks are powerful, they’re not perfect.
Software is great at automating processes, but it’s only as good as the data it’s fed. If something gets categorized incorrectly, the software doesn’t always catch it. We recently had a client who thought he hadn’t made his retirement plan contributions because QuickBooks had miscategorized them as insurance. That kind of error could have led to serious consequences if it hadn’t been caught in time.
A combination of software and a skilled accountant is the best solution. Together, they provide the automation and oversight needed to keep your finances on track.
Signs It’s Time to Stop DIY Accounting
DIY accounting has its place, especially for small businesses with simple financials. But as your business grows, you’ll likely outgrow those methods. Here are some signs it’s time to call in a professional:
- You’re procrastinating. If bookkeeping feels overwhelming or you’re avoiding it, it’s a sign that it’s too much to handle on your own.
- Your accounts aren’t reconciled. If you don’t know exactly where your money is going or how much you have, it’s time to get help.
- You don’t have clear financial reports. As your business scales, understanding your sales, profits, and expenses becomes critical. If you can’t access accurate reports, it’s a problem.
Strategic Planning with Accountants
One of the biggest benefits of having an accountant is their ability to help with strategic financial planning. When your records are accurate and up-to-date, you have a clear picture of your financial health. This clarity allows you to make smarter decisions about hiring, purchasing equipment, and more.
For example, if you’re thinking about expanding your team, an accountant can help you determine if your cash flow supports it. Or, if you’re considering investing in new tools or equipment, they can analyze the financial implications to ensure it’s the right move.
DIY vs. Professional Accounting
Let me share my personal opinion: DIY accounting is fine when you’re just starting out and have a simple setup. If you’re a consultant sending out a few invoices with minimal expenses, you can probably handle it on your own for a while.
But as your business grows, the complexity grows with it. More transactions, more expenses, and more moving parts mean more chances for mistakes. DIY accounting often leads to messy books, and cleaning it up later is both costly and stressful.
Focus on What You Do Best
At the end of the day, your time and energy should be spent doing what you love—running and growing your business. Accounting may not be your passion, but it’s mine. By outsourcing your bookkeeping and financial management, you can focus on what really matters while having confidence that your numbers are accurate and your business is on solid financial ground.
If you’ve been putting off hiring an accountant or are unsure where to start, let’s talk. The right time to get help is always before things get too overwhelming—and trust me, your future self will thank you for it.