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That is a great and very personal question. A lot depends on your background.
When you go into business, your main objective is to make money.
As you grow, there is more and more bookkeeping and accounting requirements that you have to handle.
A good bookkeeper or accountant is just like hiring additional employees, relieving you of a tack.
I do consulting with Quickbooks which is great accounting software. All my clients have outside or
independent accountants to review the books and records, prepare year end taxes and liaison with bankers.

My words of wisdom to a start-up
entrepreneur would be to have a very good business plan with financial
projections that would indicate that careful thinking had taken
place. Small business owners need to know that it is not a 9:00 to 5:00
responsibility, that there will be long hours. As far as finances are
concerned, a good accountant is the answer.

Good luck, LUCKIEST

I agree with the previous post that it's not an "either/or" question. I think you need an accountant at the point when (a) you have ask - or - (b) you realize that you have better things to do than "accounting" work. Accounting is fairly simple for a new business, and in the early stages you usually have time to handle it yourself. Eventually, however, the process gets more complex, requiring more of your time -- time that could be spent more profitably doing whatever it is you really do to run the business and generate revenue.

Marzipan

You raise a good question and from what I have been reading you have received some very good responses. I am going to approach your question from a different perspective. In my business I help start-ups and small businesses to institute a QB software program for their business. However, as already mentioned the program is only as good as the person using the program. I will install the program complete with COA's and provide training. However, I believe it is very ethical to maintain an arms length transaction at year end, and advise my clients to utilize an accountant.

Good Luck

Fundamentals

Good accounting software and a good accountant are 2 different needs. The accounting software is needed to record the daily transactions of the business. Once the accounting software is set up the owner or bookkeeper can enter the transactions into the system and the accounting software will prepare prepackaged reports. A good accountant (CPA) will take those transactions and complete your tax returns (TPT, Payroll, Income, etc) and represent you in front of the IRS or other government agencies in the event you are selected for an audit. A good accountant (CPA) can also prepare financial statements for lenders and potential investors. A good accountant (CPA) is also a consultant for your business who usually has years of experience that he/she is willing to share with the business owner. A good accountant (CPA) can perform due diligence when you are looking to acquire another business or major assets. At this time I don't believe any software has been written that can fill the role of a good accountant (CPA).