The first question to ask your accountant if you wish to expand your business is whether you are cash flow positive. Also, do you have enough cash on hand to carry you through an expansion? Ideally, you should have at least six months of cash on hand to cover the extra costs of expansion.
Most businesses must spend more cash to fuel their growth. They must invest in some or all of the following: hiring more employees, buying more inventory, buying more equipment. And it usually takes many months before any growth and additional profit is created from this investment. Therefore, having a safe level of cash on hand, and ensuring you understand your cash flow projections are key.