So, you just started your very own startup. You think, with enough time, it can be a major industry player. Or, you are an independent contractor and have moved from W2s to newer and more confusing tax forms. Or, you have started to diversify your own portfolio and have started investing in cryptocurrency and rental properties. The question remains: should you hire an accountant?

First things first, I can see why you would hesitate to hire an accountant. Accountants are expensive, and in the age of AI, can you not just plug your questions into Chat GPT? Or, having someone look over your finances symbolizes a loss of control, and if you do it yourself, you only have to worry about you, right? You are smart, resourceful, and accounting should not be that hard to figure out.

While I commend the gumption, you have to ask yourself, have you ever taken an accounting class? Do you know and can you apply the accounting equation? How are you with journal entries and T charts? Would you feel comfortable giving the financial statements you created to potential investors? If the investors read your statements, would they give an accurate picture of your firm’s financial history? If there are any material misstatements in your financials, are you ready to take the liability that comes with gross negligence?

All of these questions are not meant to belittle your intelligence or work ethic. They are just to get you thinking about whether or not you are ready to take the role of financial manager of your company.

Furthermore, while AI and Chat GPT have come a long way, they cannot replace the role of a trained accountant who has studied in a structured, learning environment.

Accounting is not something you think of once in a blue moon. It is the driver of all business operations and strategy, and you need someone who has a more than passing familiarity with it. Quite frankly, for your business to survive and thrive, you need to have not only accurate financial records, but a financial plan that all sectors of your business are working towards.

So, the question remains: should you hire an accountant? Only you can answer that, but if you are expanding and you need financial guidance, I am going to strongly recommend you consider hiring one. Business is too tough not to leave anything to chance.