Many company owners would need to hire a certified public accountant to provide small business financial advice at some stage in the future. When should this be done, though? Certain things, or red flags, should cause you to take action. Spending too much time on the accounting side of the company, making errors that would result in an audit, diminishing assets, draining capital, stagnating sales, and missing productivity are just a few examples. Get the facts about Norfolk Accountant
Failure to Stay Focused on Your Dreams
When the time spent on the accounting side of the company exceeds the time spent on the business, small business financial advisory services should be pursued. It’s likely that the owner’s passion is also the business’s specialty. A landscaping company, for example, is likely to enjoy working outdoors and the artistic aspect of the job. If you’re spending more time hunched over a paper spreadsheet, you probably need a certified public accountant.
The Terrible Audit
The IRS is well-known for focusing on small businesses. If that isn’t enough to get you audited, maybe filing late or doing something else that the IRS searches for will get you that dreaded IRS letter. Because any small business owner fears an audit, this would almost certainly result in a call to a certified public accountant. It is, however, a good idea to call if you find that the books are in disarray and that forms are being filed late.
Assets on the drop
Another issue that can encourage a small business owner to seek financial advice is what to do with diminishing assets. Furniture and cars, for example, will cost a company a lot of money. In addition, intangible assets such as franchise rights and leases can depreciate. These can easily develop into a complex problem that consumes a company’s valuable resources. Many business owners are aware that these can be tax write-offs, but finding out how to measure them is a different storey.
Revenues That Haven’t Grown in Years
If a company isn’t profitable, it can’t remain in operation. The owner, on the other hand, might be scratching his or her head, trying to find out what’s wrong. The goods or services are of high quality and in high demand. The promotion seems to be satisfactory. There doesn’t seem to be any explanation for the failure. As a result, many small companies need the assistance of a certified public accountant. They may be able to provide the answers needed to turn the company around.
Employee Efficiency Is Poor
Payroll is one of the most important costs for any small business owner. That does not have to be the case, however. It shouldn’t deplete any of the company’s important capital. This is particularly true if the work can be performed more effectively or even outsourced. If it can, a certified public accountant (CPA) may be able to assist in making some of these decisions or finding ways to make the job more effective.
If you own a small company, you might want to consider asking these questions. Is the drudgery of accounting suffocating your passion? Are there any errors that could lead to an audit? Is it true that depreciating assets are sapping resources? Are your earnings remaining the same? Do the workers seem to be unproductive? If you replied yes to all of these questions, you should seek financial advice from a certified public accountant.