Signs your business needs an accountant
Five symptoms that do-it-yourself bookkeeping is no longer enough — and the risk each one brings.
When they start, many businesses keep their books in a spreadsheet and a folder of invoices. It works — until it doesn’t. These are the signs.
1. You mix personal and business finances
If the household groceries and supplier payments come out of the same account, you can’t tell whether the business is actually making money. It’s the first thing to sort out.
2. You file your returns at the last minute
Scrambling every month to put together the VAT return is a sign the books aren’t up to date. Sooner or later it turns into an error and a penalty.
3. You don’t know how much you’re owed or how much you owe
Without tracking receivables and payables, money “appears and disappears” and decisions get made on gut feeling.
4. You’re about to apply for a loan or bid on a contract
Banks and institutions ask for certified financial statements. Putting them together at the last minute rarely goes well.
5. You hired your first employee
Payroll brings in the CCSS (social security), the INS (workers’ insurance), employer contributions, the Christmas bonus (aguinaldo) and vacations. Getting any of them wrong has a cost.
If you recognize yourself in two or more, it’s time. Let’s talk.