Before you take your dream from the beginning stages of notes and drawings to actually running and operating your business, you need to make sure you have someone to help you with your financial organization of the business. Starting your company takes a great deal of time and passion that you probably don't have for the accounting aspects of running your business.
Starting the right way with an accountant can set you up for better success from day one. Although it is an added expense you thought you should hold off on till funds start rolling in, you may be missing out on what a business accountant can do for you in the start-up phase that can be saving you time and money.
Finding an accountant that you can trust and work with can be a time-consuming task. To make it easier, you can always ask for references from friends, family, or your attorney. This is an important decision, so make sure your references are suitable for your needs. There are also search firms like Ageras that will provide you with certified accounting professionals in your area. These services are generally free of charge to you and will give you a handful of professionals that are experienced to handle your business and industry accounting needs. You can consult with each one and make a decision on who will be the best for you and your business.
Reasons for Startups To Have an Accountant
If you are still wondering why it is so important to have that accountant right at the start-up of your business, here are four reasons to consider:
They can help you determine the best software to use for your accounting system.
They can help you determine if an LLC, sole proprietorship, corporation, or partnership is the best business structure for you.
They can assist with your initial banking and set up of accounts and bank cards.
They can file your financial statements and taxes to ensure you are in compliance.
Imagine the time saved in just these decisions alone by having a professional guide you through these initial steps. You can take this extra time now and work on getting your business off the ground, finding your clients or partners to work with, and establishing yourself in your industry.
How Accountants Grow Your Business
You can also work with your accountant throughout the year, not only at start-up and tax time. This will enable you to have a financial advisor who is willing to guide you to success. If you have big business decisions like expansion and hiring an employee, the purchase of large equipment, or adding more inventory, your accountant will be able to assess when a good time is for your business for doing these ventures.
A good financial plan and budget are the backbone of growing your business. Accountants are your resource and guide for doing just this. You can meet with your professional quarterly to set the stage and plan for your next quarter.
As your company and cash flow expand, managing your income and expenses becomes just as important as managing your start-up funds. Here is how your accountant can now help you:
Invoicing. They can set up a system to help you collect account receivables more efficiently.
Cash Flow. They can help you organize your cash flow when you have unexpected expenses.
Payroll. If you do have employees, they can assist you in managing payroll and staying compliant with payroll taxes.
Spend Your Time in Your Business
You have spent a great deal of time dreaming about your new business, planning its execution, making a presence in social media and in your industry, and building your client base. Keep your focus on your business and not on the stresses of compliance and accounting procedures.
Not having an accountant during start-up could have cost you not knowing what deductions you could have been taking and planning future deductions. Take the guesswork out of big business decisions and future budgeting. Turn to your professional financial advisor and work together to grow and succeed. Your accountant may not be the least expensive budget item you have, but they will save you more time, energy, and money than you could have on your own.
