Three isn’t any right time per se, but the best time to hire an accountant is from the very beginning.Handling a business isn’t easy. Every large company out there either has a dedicated accountant or hires someone to the taxes on a monthly or annual basis.
Either way, the importance of accountant services is paramount and cannot be ignored whatsoever. Instead of asking this question you should a different one i.e., at what stage of your business should you be hiring an accountant.
This is just a basic guide and takes into consideration that your company is comparatively young (somewhere between 1-5 years).
There are various stages of growth in business, namely the
The first two falls under the early phase, then comes to the mid-phasefollowed by the last two which is the end phase. Now at the beginning, you can go on a few months without an accountant. Though it is strongly advised you hire one, if you’re really short on budget you can make do with your own skills.
However, make sure to record every transaction to the best of your abilities. You may not have an accountant to guide you through the finances, but the least you can do is maintain a ledger. Just to keep track of what and how much you’re spending/earning.
After a few months if you see that your business is growing in a steady and constant pace, hire someone immediately. The sudden influx of customers can be overwhelming, which isn’t the best state of mind to be in when making entries to your ledger.
By the mid phase, you should have enough budgets to hire an accountant. The charteredaccountants at Oakville do a great job of handling the business at this phase. This is a crucial stage where you need to conserve all the data and statistics of your products/services.
This data will shape the future of your company. It will help you detect products that are best liked by your customers, and also give you an estimate of your success over the course your journey so far. Hiring someone at this stage is a must.
In the last stage, the demand for the specificproduct will start to wane away a bit. You can do something new with your products or stick to the old one, but by this stage, you should have someone regulating the cash flow within your company.