When To Replace Your Accountant

As you grow your business, the role of an accountant may shift over time to accommodate your expanding needs. You must work closely with your accountant to ensure that their advice and services are in line with how you operate your business. The following is a guide on when to replace your accountant based on different growth stages of your business:

1-2 Employees – If this is the first version of your company website, it’s best not to hire an outside firm for assistance until you know exactly what features you need and what direction the site should go in. Of course, it wasn’t always this easy. Before there were templates or prebuilt themes, websites were designed by hand or created software like FrontPage (a Microsoft product discontinued in 2013).

As a startup company, you’re not going to have much of a budget, and most likely your website is going to be built on one of the free platforms like Weebly or Wix. You can also save money by hiring freelancers directly instead of working with an agency.

man writing on paper

When it comes time to redesign your site, perhaps you will consider outsourcing some individual pages or work such as animations so that you don’t have to hire someone full-time just for updates.

3-10 Employees – Once your business starts growing exponentially and you find yourself having trouble keeping up with day-to-day tasks such as bookkeeping, payroll, and invoicing, it will probably be time to start looking into hiring an accountant. Their services might be cheaper than you think; especially if you take advantage of a referral from another entrepreneur who has used their services before and is satisfied.

Also, as the company grows, the owner(s) will probably start delegating tasks such as bookkeeping to other employees (if they’re not already doing it themselves). It’s important that these employees have at least some training in accounting and don’t just guess when entering numbers into Quickbooks or FreshBooks. This can lead to incorrect or omitted information and potentially illegal errors.

10-50 Employees – When your company grows even larger and starts requiring additional office space, it may be time to hire an internal team of accountants instead of hiring one person part-time to cover the entire company.

Hiring an accounting team can be beneficial to you as a founder because they will take over some of your previous bookkeeping tasks, freeing up your time for more important decisions that will help the business grow. It’s important that this team is trained well and understands how your business operates.

50+ Employees – This is arguably the most crucial hiring decision to make as your business grows larger. Especially if you are looking into obtaining investors to expand even further, you must have someone with extensive knowledge of financial management on staff.

An outside accountant may not always be able to anticipate or foresee potential problems within your company since they don’t know all the intimate details about its inner workings.

Always remember to choose an accountant who is willing to learn about your specific business and how it operates. They must also be honest with you, especially if some issues need to be fixed. A good accountant will tell you when it’s time to hire more employees or replace some of your old equipment for the company to stay afloat.

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