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You probably excel in a DIY atmosphere as a small-business owner, but the more hats you wear, the less you'll achieve success. Accounting is one of the most critical aspects of running a successful company. When your business grows and expands, the software can only take you so far. Accounting firms will assist your business in moving forward. The following are some of the reasons why you should employ accounting firms at any point in your company's growth.

1. Your business is in the startup phase

You may feel that hiring an accountant is premature, but the way you set up your operations can have a huge effect on your potential performance. An accountant will assist you in identifying the most suitable business structure, reviewing your business plan for financial compatibility, and guiding you through the startup process to make sound financial choices so you don't have to invest more money later to fix mistakes.

2. Your business has employees

You may not believe you have enough work for an accountant in the first few years of your company. However, even if you don't have a big staff, an accountant would have the advanced expertise to make your money work for you. The accountant has the ability to:

  • Assist in accurately classifying workers and independent contractors.
  • Payroll and payment systems are under your authority.
  • Build a plan for sending W2s and 1099 forms that work for you.

3. Your business structure requires audits

Audits are not mandatory for all small companies, but unless you meet with an accountant, you can not know until it's too late. The Sarbanes–Oxley Act (SOX) applies to public companies, and private companies planning for an initial public offering (IPO) may be expected to comply with such SOX requirements as well. Furthermore, all companies should adhere to universally accepted accounting standards in their respective jurisdictions (GAAP). Hiring an accountant will ensure that the reports are up to date and in accordance with relevant regulations.

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