Contrary to what some might think, all sorts of people can build a small or medium enterprise (SME) and drive it to success. However, as an SME owner, you do have to know a little bit of everything to make things work. This is absolutely necessary in the early days when you may need to handle everything, from marketing to managing your finances.
Still, what worked for you initially will not necessarily remain so as your business gains momentum. When your business grows, so do its financial responsibilities and the many complexities that come with it.
Many SMEs eventually come to a point in their financial management where the founders are no longer able to keep pace with what’s expected of them. This point in your business’s timeline can vary, so knowing when to bring in a professional accountant can be the key to keeping your business thriving.
Signs you need to hire an accountant
To that end, here are several signs your SME could benefit from hiring a professional accountant today:
1. You’re Fumbling Your Finances More Often
As your business grows, so will the complexity of your transactions. Getting a professional accountant should help streamline your financial processes and ensure each transaction is accurately recorded. Pairing this with an SME-focused bank that provides easy business banking online will also help keep your day-to-day finances well in check.
2. You Can’t Keep Up with Your Cash Flow
Whether one is continually coming up short or suffering from success, cash flow issues are common for many SMEs. At best, it can cause missed opportunities to grow your business faster. At worst, cash flow mismanagement could lead to a loss of stakeholder confidence and mounting debt. If you find it challenging to keep track of incoming and outgoing funds, an accountant can provide cash flow analysis and strategies to optimize your SME’s cash management.
3. It’s Harder to Stay On Top of Your Taxes
Philippine tax laws are frequently updated and they can be a bit much for laypeople to manage. If you’re struggling with your taxes, it’s a clear sign that you need an accountant. When looking for one, simplify things by choosing a bank that offers tax management features or easy integration with your accountant’s own processes.
4. You Don’t Know How Well You’re Doing
If you can’t readily identify whether you’re turning a profit or running at a loss, an accountant can provide you with comprehensive financial statements as well as data-driven insights and recommendations. Their financial analysis could help you make informed decisions and pivot when necessary, especially if the accountant is familiar with your industry.
5. You Have Plans to Expand Operations
As mentioned, the more you expand your SME, the more complex your financial considerations will be. Areas like budgeting, forecasts, and funding requirements will require ever-expanding databases and you will probably need an accounting professional to assist in creating your developing SME’s financial roadmap.
6. Handling Payroll Is Becoming Overwhelming
This is a related issue to the previous point but also quite distinct. Managing payroll can be time-consuming and complex, particularly when you account for the customary bi-monthly payroll cycle and local labor laws.
Speedy and accurate computation of salaries, taxes, and benefits is a must, not just for legal compliance but also for keeping your team onboard. A qualified accountant can handle payroll processing to ensure compliance and accuracy regardless of how big your roster is or how complex the pay cycles are.
8. You’re Dependent on Investor Funding
Scoring high-quality, low-risk external funding is essentially impossible without the aid of qualified accountants. Having a professional accountant handle the books will help you produce and, importantly, present financial statements that reflect the stability and profitability of your business. They can structure your data in a way that remains truthful while also raising the green flags that investors and banks want to see.
9. You Can’t Figure Out What Comes Next for Your Finances
Whether you want your SME to expand or remain in the same lanes, being able to forecast future earnings, expenses, and growth potential is essential for long-term planning. If you’re unsure how to accurately predict financial outcomes, an accountant who understands your industry should be able to provide realistic forecasts of your business’s future performance.
While you probably still know what’s ultimately best for your business, the data-driven insights provided by an accounting professional can help you form long-term growth decisions that are more grounded in reality.
Summary
If you’ve noticed any of these signs in your own business, it may be time to hire an accountant or look into getting accounting services on retainer. If you’re still doing banking the old-fashioned way, you should also consider switching to a bank that offers modern online business banking. An accountant and the right banking support can be the catalysts for continuously making sound financial decisions that support your SME’s success.
