Many founders expect to look after the finances themselves, and at first they can. But as the business, its revenue and its obligations grow, there isn't time to do everything.
If you're wondering whether to get an accountant, look for these signs.
1. Accounting isn't your field
Gaps in your accounting knowledge can take the business off course. An accountant can teach you the basics so you can manage more yourself later, but it isn't worth risking the business to save a little money now.
2. Tax is a mystery
A good accountant knows the tax rules and concessions for small businesses, which can make a real difference to what you keep. Getting tax wrong can bring penalties and interest.
3. The business is growing
Growth means more people, more suppliers and more paperwork. Get an accountant before it gets out of hand.
4. You need reports to raise money
Lenders and investors want clear, accurate financial reports. An accountant can prepare them.
5. The ATO is asking questions
If the ATO reviews or audits your business, an accountant can make sure your records and systems are in order and deal with the ATO for you.
6. Sales are high but profit is low
An accountant can show you where money is leaking and how to cut costs and lift your margin.
An accountant does far more than prepare financial statements: payroll, tax, cash flow and budgets, and checks on your internal controls among them.
Anyone you pay to prepare and lodge your tax return must be a registered tax agent. You can check on the Tax Practitioners Board register at tpb.gov.au.