The Quick Answer
Yes.
The better question is whether you can afford not to have one.
Most business owners don’t struggle because they hired an accountant too early. They struggle because they waited too long.
Why This Confuses So Many Business Owners
One of the things I hear most often is:
“I’d love to have an accountant, but I just can’t afford one yet.”
I understand why people feel that way.
When you’re starting a business, every dollar matters. You’re trying to buy equipment, market your business, pay employees, and hopefully have something left over to take home yourself.
Hiring an accountant feels like another expense.
But after working with business owners for years, I’ve found they’re usually asking the wrong question.
Instead of asking whether they can afford an accountant, they should be asking whether they can afford to do everything themselves.
What Are You Actually Paying For?
When most people hear the word accountant, they picture one person doing everything.
In reality, there are usually two very different services.
Bookkeeping
A bookkeeper keeps your financial records organized and up to date.
That includes things like:
- Reconciling bank accounts
- Reconciling credit cards
- Recording income and expenses
- Tracking depreciable assets
- Processing payroll
- Filing New Mexico Gross Receipts Tax returns
- Preparing monthly financial statements
For many small businesses, this service ranges from a few hundred dollars per month to a couple thousand dollars depending on the amount of work involved.
Tax Planning and Tax Preparation
Preparing business tax returns and helping business owners reduce taxes is a different skill set.
That’s where I generally recommend working with a CPA.
CPAs complete extensive education requirements, pass a rigorous licensing examination, and complete continuing education every year to maintain their license.
Business tax returns vary considerably in price depending on complexity, but you’re paying for professional judgment—not just someone filling out forms.
Could You Do It Yourself?
Absolutely.
Thousands of business owners do.
The real question is whether that’s the best use of your time.
When you own a business, you’re already wearing a lot of hats.
You’re the salesperson.
You’re marketing.
You’re customer service.
You’re ordering inventory.
You’re hiring employees.
You’re collecting money.
You’re solving problems every day.
Now you’re also the accountant?
Doesn’t QuickBooks Do Most of It?
QuickBooks Online and Xero are excellent accounting programs.
Setting them up is easy.
Using them correctly is where the work begins.
You still need to decide:
- Which account should this transaction be posted to?
- Is this an expense or an asset?
- Did I reconcile the bank account correctly?
- Why doesn’t my credit card balance match?
- Should this equipment be depreciated?
- Did I file my Gross Receipts Tax correctly?
- Can I trust these financial statements?
Accounting software records information.
It doesn’t replace experience.
Where I See Business Owners Get Into Trouble
The mistakes usually don’t happen because someone forgot to enter one transaction.
They happen because nobody was looking at the bigger picture.
I’ve seen business owners:
- Miss S Corporation planning opportunities.
- Forget to file Gross Receipts Tax returns.
- Mix personal and business expenses.
- Make business decisions using inaccurate financial statements.
- Discover bookkeeping problems months—or even years—after they started.
Fixing those problems almost always costs more than preventing them.
So Who Should You Hire?
If it were my business, I’d look for a CPA firm that offers Client Accounting Services (CAS).
That gives you the best of both worlds.
A bookkeeping team handles the day-to-day accounting.
A CPA reviews the work, prepares your tax return, provides tax planning, and helps you make better financial decisions.
Instead of managing separate relationships for bookkeeping, payroll, and taxes, everything works together.
Questions Business Owners Ask Me
Can I start with just bookkeeping?
Absolutely.
Many businesses begin there and add additional services as they grow.
Can I switch accountants later?
Of course.
Businesses change accounting firms every day.
Is hiring an accountant tax deductible?
Generally, yes. Accounting and bookkeeping fees are typically deductible business expenses.
Will an accountant save me money?
Sometimes through taxes.
More often by helping you avoid expensive mistakes before they happen.
One Thing I’d Tell Every Business Owner…
You didn’t start your business because you wanted to reconcile bank accounts, process payroll, or learn New Mexico Gross Receipts Tax.
You started it because you’re good at what you do.
The sooner you can spend more of your time serving customers and less of your time worrying about bookkeeping, the more opportunity you give your business to grow.
That’s where a good accounting team earns its keep.
About Arsenault CPA Firm
At Arsenault CPA Firm, we help New Mexico business owners simplify the financial side of running a business. Through bookkeeping, payroll, tax planning, and accounting advisory services, our goal is to give you accurate financial information so you can spend less time working on your books and more time working on your business.