When Do You Really Need An Accountant?
There is no clear-cut answer. The answer is depends. It depends on your knowledge base. It depends on you business experience. It depends on you comfort level.
Most people believe they can setup their Sole Proprietorship or LLC by themselves; install, setup and implement their QuickBooks program by themselves; properly account for all monies in and out by themselves; and transfer such business information to the proper tax forms to accurately reflect, “under the penalties of perjury”, their individual tax liability.
If you can do all of these, you do not need an accountant. If you need help with any of these, you might need an accountant.
The question then becomes not if you need one; the question is how often.
Businesses that gross over $1M need an accountant full-time. Businesses that have payroll or complicated sales tax returns need an accountant at least once a month. Most small businesses need an accountant on a quarterly-basis just for checkups. Some savvy business owners just want accountants to do the annual taxes; or to setup their business, teach them a few things, be available for phone calls.
You need to determine when you need an accountant. A no-cost phone call to an accountant familiar with your business can give you options.
Joseph M. Tames has been a Certified QuickBooks ProAdvisor since 1999. Joe travels throughout the United States installing, setting up, training, and troubleshooting QuickBooks software and solving accounting and tax-related issues. In his spare time, Joe attempts to solve the photographic properties of exposure and composition. You can reach Joe by phone at 866-293-5974 or by email at josephtames@gmail.com.
Great article!
Super article! I have three little businesses, and used to think I could handle all the “bookwork” (Quickbook). Holy cow was I losing my butt at tax time! I now use the quarterly consult model you speak of. I’m also spending a lot less on Tums and Prilosec…