When Does it Make Sense to Hire an Accountant? Experts Weigh In

MELBOURNE, Australia, Feb. 18, 2022 /PRNewswire/ -- Companies of all sizes across all industries require accounting services from time to time, especially as the business grows and expands. Because many businesses cannot afford to keep an accountancy firm on retainer, Xero accountant XO Accounting suggests hiring an accountant on an as-needed basis. But how do businesses know when to hire an accountant and when to crunch the numbers themselves? XO Accounting shares their expertise.

For prospective business owners, hiring an accountant can be helpful when drafting an initial business plan. An accountant can smooth out any wrinkles in the plan and assist in setting realistic, achievable financial goals and projections. This will significantly increase the business owner's chances of being approved for a bank loan and finding investors.

To begin with, many small business owners take on the role of accountant themselves on top of their other responsibilities. However, as the business grows and the accounting work becomes more complex, this is not a sustainable practice. XO Accounting explains that there are many moving parts in the accountancy side of business ownership; data entry, business data analytics, system creation and bookkeeping are all skills that need to be mastered in order to have an accurate, efficient accounting system. Unless the owner or employee taking on these tasks is well versed in accounting, they can very quickly become overwhelmed. When this happens, XO Accounting urges business owners to engage the services of an accountant.

In some cases, it is in a business's best legal interest to hire a chartered accountant in order to avoid issues or fines. Things like tax compliance can be tricky for someone who isn't a licensed professional to figure out. Mistakes could be costly to fix and often have dire consequences. This also applies to businesses being audited. Being flagged for an audit by the government is serious; an accountant can help a business owner prepare to be audited and prevent future audits.

XO Accounting is one of the leading providers of accounting and resident director services in Melbourne. Contact them to speak to an experienced accountant today.

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SOURCE XO Accounting