Many business owners are referred to a financial accountant by their CPA when their financial books are in a state of disarray. Most business owners begin their business handling everything themselves. Whether fully knowledgeable in accounting or not, they undertake the whole process of working their business and their financial books in an effort to save resources. Unless accounting is their business, this is rarely beneficial in the long term.

So when should you hire a financial accountant?

Ideally, at the very beginning of starting a business. A skilled and knowledgeable financial accountant will assist in everything from the formation of the business (filing corporate documents, businesses licenses, federal filings, etc.) to choosing accounting software and tailoring that software for the business’ industry. Hiring a financial accountant at the beginning will save you countless hours of research, hundreds of dollars in erroneous filings, and will ultimately allow you to focus on what you do best from the very beginning, that is: running your business.

For the business owner compelled to handle everything for the first few months to a year, until business stabilizes after the initial start-up rush, hiring a financial accountant can bring great relief. After bringing the books current, a financial accountant can handle the day-to-day tasks of accounts receivable, accounts payable, collections, posting credit card expenses, tracking assets, filing employee paperwork, and processing payroll. In addition, a qualified financial accountant will produce financial reports, file all quarterly and annual reports and ensure the books are ready for the CPA at tax time. Having a financial accountant at this point will give you the freedom, time, and knowledge to be more strategic with your business.

In the event you are in the heated throes of running your business and have discovered that, 1) it has been too long since updating your books, 2) you’re not sure of the state of your P&L and Balance Sheet, 3) you’re running your business week by week based on cash flow, or any combination of the three, don’t wait any longer; you have now hit critical mass and it is vital that you hire a financial accountant. In this situation, a proficient financial accountant can clean up records that incorrectly mingled personal and business expenses, repost incorrectly coded expenses and assets, bring the records up to date, reconcile accounts, and produce financial reports to allow you to make educated decisions for your business.

The three examples provided are only a few of the signs that you and your business need a financial accountant. Unless your business is accounting, a financial accountant is an essential asset regardless of the stage of your business. The sooner you can add a financial accountant to your team, the sooner you can focus on what you do best: running your business.