When to Hire an Accountant and How It Helps Your Business

Published Friday 16 January 2026

Table of contents

• You're spending too much time on bookkeeping
• Make tax time easier
• Your cash flow is unpredictable
• You've made costly financial mistakes
• You're scaling and need a financial strategy
• You need advice when writing a business plan
• You need advice about your company's legal structure
• You're ready to delegate financial tasks
• When your company is growing, get help with the details
• You need help dealing with government requirements
• Making your business finances work for you
• FAQs on when to hire an accountant

Key takeaways

• Recognize when to hire an accountant by evaluating if you're spending more than 10 hours weekly on bookkeeping or if your opportunity cost exceeds professional accounting fees.
• Prioritize getting professional help during key business moments including tax season stress, unpredictable cash flow, scaling operations, or when writing business plans that require credible financial projections.
• Implement a cost-benefit analysis comparing your hourly rate to accounting fees, as business owners typically value their time at $96.39 per hour while accountants often charge less and reduce costly error risks.
• Utilize accountants for strategic guidance beyond basic compliance, including cash flow forecasting, business structure advice, payroll management, and growth planning to make informed decisions with real-time financial insights.

You're spending too much time on bookkeeping

You started your business to pursue a passion, not to get buried in paperwork. If you find your evenings and weekends are spent reconciling accounts and chasing invoices, it's a clear sign you need support. Your time is valuable, and spending it on bookkeeping means you're not spending it on growing your business.

A simple cost–benefit check can help you see when it pays to hire an accountant.

DIY costs:

• Time investment: 10+ hours for tax preparation
• Opportunity cost: Based on official estimates that place the hourly rates for owners at $96.39, spending 10 hours on bookkeeping could represent nearly $1,000 in lost revenue
• Error risk: Penalties and corrections can cost thousands

Professional benefits:

• Lower hourly rates: Accountants often charge less than your billable rate
• Revenue generation: Freed time allows focus on business growth
• Risk reduction: Expert handling minimises costly mistakes

Make tax time easier

For many business owners, tax season can feel uncertain. You might not be sure about the rules, the deductions you can claim, or how to handle an audit. If you are not confident with the numbers, getting help can turn tax compliance into a straightforward routine.

Hiring an accountant helps make tax time routine. It is one reason around 8 in 10 businesses use accountants or bookkeepers to meet their tax responsibilities. They check your returns are accurate and filed on time, and help you claim the deductions you are entitled to.

With an expert managing your tax obligations, you can focus on running your business and avoid costly errors.

Your cash flow is unpredictable

Is money coming in and going out faster than you can track? Unpredictable cash flow makes it hard to plan for the future, pay bills on time, or invest in growth. When you're not sure where your money is going, it's difficult to make confident business decisions.

An accountant provides a clear picture of your financial health. They can help you set up a budget, forecast your cash flow, and identify opportunities to improve profitability. With their guidance, you can gain control over your finances and ensure your business has the funds it needs to thrive.

You've made costly financial mistakes

Financial mistakes can happen, but they can also be expensive. Perhaps you miscalculated your tax liability, missed a payment deadline, or made an investment that didn't pay off. These errors can impact your cash flow and create unnecessary stress.

An accountant can help you correct past mistakes and put systems in place to prevent them from happening again. They provide the expertise to manage your finances accurately, so you can move forward with confidence and protect your bottom line.

You're scaling and need a financial strategy

Growth is exciting, but it can also make your finances more complex. As you hire staff, expand, or look for funding, you will face bigger money decisions.

An accountant can guide you through this stage. They can review your profits, test different growth options, and help you get ready for loan applications. Their advice helps you make clear, well-informed decisions about how and when to grow.

You need advice when writing a business plan

Getting help with your business plan from an accountant can make your numbers more accurate and credible. Involving an accountant early can provide:

• Financial projections: Realistic revenue and expense forecasting
• Professional presentation: Investor-ready financial statements
• Strategic guidance: Market-tested assumptions and benchmarks
• Cost efficiency: Prevents costly revisions and planning errors

Our business plan template can help you get started.

You need advice about your company's legal structure

The business structure you choose affects your liability, tax, and how simple your business is to run. Getting advice from an accountant can help you choose the right option for your situation:

Sole trader benefits:

• Tax advantages: Offset living expenses against business income
• Simple setup: Minimal paperwork and compliance requirements

Sole trader risks:

• Personal liability: Your assets at risk for business debts
• Limited credibility: May affect supplier and customer confidence

Limited company benefits:

• Asset protection: Business debts separate from personal wealth
• Professional image: Builds credibility with customers, lenders, and suppliers

Professional guidance: Accountants assess your specific situation and recommend the optimal structure for your goals.

You're ready to delegate financial tasks

Delegation readiness becomes crucial when control preferences limit business growth. Financial delegation offers the ideal starting point:

It can be hard to delegate when you:

• Want to stay across every part of the business
• Find it hard to trust someone new with your finances
• Feel too busy to train someone properly

Delegating finances can help you:

• Free up time to focus on earning revenue
• Rely on a specialist who works with numbers every day
• Feel calmer knowing your finances are organised
• Grow the business without stretching your own capacity

A simple way to start is to delegate financial tasks first. They are clearly defined and measurable, which makes them easier to hand over and review.

When your company is growing, get help with the details

Growth does not always happen at a steady pace. A new client or big project can mean you need to expand faster than you planned.

An accountant can help you manage the day-to-day impacts of growth, such as hiring employees or taking on more office space. They can handle the detail of payroll and employee tax, property tax, and bills, so you can focus on how and where you want the business to grow.

An accountant can also use accounting software to analyse your cash flow, stock levels and margins, and pricing. They can also handle tasks like processing wages online. According to official small business compliance research, around 41% of businesses do this.

They can also provide insight into how to properly grow your business through financial analysis. They could even help determine when is the best time to introduce a new product or service offering to your range.

You need help dealing with government requirements

As your business grows, keeping up with tax rules and other government obligations can get harder. An accountant can help you stay on top of more than just your annual tax return:

Core compliance services:

• File tax returns accurately and keep up with law changes
• Prepare and lodge required business registrations and forms
• Produce annual financial statements and any required reports
• Keep director details and share allocations up to date
• Set up payroll correctly so employee tax codes and payments are accurate
• Reduce the risk of penalties by having an expert keep your records and filings in line with changing rules

Making your business finances work for you

Hiring an accountant is not just about handing over tasks. It is about working with someone who helps you understand your numbers and reach your business goals. From managing daily bookkeeping to providing strategic advice, they give you the clarity and confidence to run your business better. You get to focus on your passion, knowing the financial details are in expert hands.

When your accountant uses a platform like Xero, you get real-time insights into your business performance anytime, anywhere. This combination of expert support and smart technology empowers you to make informed decisions and build a more profitable, sustainable business.

Ready to take control of your finances? Try Xero for free.

FAQs on when to hire an accountant

Here are answers to some common questions about hiring an accountant.

At what point is it worth getting an accountant?

It's worth getting an accountant when your finances become too complex to manage on your own or when you're spending too much time on bookkeeping. Key moments include starting a business, experiencing rapid growth, or needing help with tax planning and compliance. An accountant adds value by saving you time and helping you make smarter financial decisions.

Does a small business need an accountant?

While not legally required, most small businesses benefit greatly from having an accountant. In fact, official data shows that 91% of businesses incur external costs for professional services, with accountants and bookkeepers being the most frequently used. They provide expertise on tax compliance, financial strategy, and cash flow management that can save you money and prevent costly mistakes. An accountant can be a valuable advisor at every stage of your business journey.

What are the red flags for a bad accountant?

You deserve an accountant who communicates clearly, meets deadlines, and is open about how they work. If they cannot explain your finances in simple terms or often miss agreed dates, it may be time to look for someone new. A good accountant should be a proactive and trusted partner in your business.