Entrepreneurs are often on a strict budget and spend a lot of time learning how to do tasks themselves. But before you take on your own business accounting, consider these ways that a real accountant can help your small startup save money and avoid financial problems before you even open your business doors.
Setting up a Business Structure. There are many types of business structures (such as an LLC or a sole proprietorship), accounting years, and methods. Your accountant will help you choose a business structure to minimize taxes and maximize profit while keeping paperwork as streamlined as is reasonable. They can help you choose the best time to close your books and discuss the pros and cons of cash versus accrual accounting.
Creating a Business Plan. A business plan is a key factor in not only securing money for your startup but also laying out steps to reach your goals. Involve your accountant to help you design a business plan that is realistic but also appeals to creditors and banks whom you ask for money. In addition, an accounting pro will help you formulate a game plan for reaching business and financial stages.
Choosing Accounting Software. Most businesses—even small ones—use some form of computerized accounting help these days. No matter what level of computer work you're comfortable with, your accountant can help you design a workable system. Your size may only warrant keeping spreadsheets or entering bookkeeping information once per week or month, but an accounting pro will work with your needs to make it work for you.
Working with Vendors. Vendors are a mainstay of all businesses, but understanding how to work with them will save you money and hassle later. First of all, talk with your accountant about how to avoid hiring contractors that should actually be classified as vendors so as to avoid problems with the state labor board. In addition, the accountant will help you create contracts, determine payment schedules, and track expenses.
Staying within the Rules. States and the federal government issue many rules and guidelines that businesses must adhere to. Do you know all the applicable rules governing payroll, sales and income taxes, reporting, and operating a physical location? Probably not. So your accountant is one of your best resources to know about, learn, and apply various agency rules to your particular situation.
No matter what type of business you're starting, working with a qualified accountant during the planning stages will help you avoid financial mistakes and stay within the rules. It sets the best precedent for your business and gets things off to a great start. So, why not make an appointment with a professional accounting service today to get started?