The Start-Up Process
When you start a business, there are many actions you need to take and systems you need to set up to create the foundation for a successful business. An accountant can help by:
Determining the best business structure (i.e., sole proprietorship, LLC, corporation, partnership) for your situation. Assisting with the financial analysis in your business plan. Providing advice on the type of accounting software you may need. Providing advice and assistance on opening a business bank account. Making sure your accounting procedures comply with government regulations and requirements. Providing advice on how to track expenses during your daily business activities. Explaining the importance of keeping personal and business expenses separate.
Regular Business Operations
Once your business is off the ground, you will need to maintain the accounting system that your accountant helped you set up. Some specific actions your accountant may take to assist you on an ongoing basis include:
Helping ensure that your independent contractors are classified as such (and not employees) by the IRS. Explaining your financial statements so you can understand the ins and outs of your business. Overseeing company payroll and payment processes. Providing advice on estimated tax payments you should make during the year. Determining when, and to whom, you should send W2 and 1099 forms. Closing out your books and create financial reports at the end of the year. Compiling and submitting your taxes, financial reports, and all necessary paperwork to the IRS.
Business Growth Stage
When you are ready to grow your business, your accountant can be an integral resource that provides advice and helps you manage the process. An accountant can also:
Help you determine areas for growth by providing insight on cash flow patterns, inventory management, pricing, and business financing. Provide advice on property and equipment leasing and purchase. Help you prevent getting audited by the IRS. Prepare you for and guide you through an audit, if necessary. Create financial forecasts so you can make better decisions in your business. Work with you to create a business budget that will support your business goals.
The most important thing you can do when it comes to your business finances is to recognize when you need to enlist the help of a professional, and then find an accountant who will help maintain the fiscal health of your business.
