Your business needs a financial management hero.
- Setting up a business involves many steps.
- Accountants can help you throughout the process, from setting up your business structure to paying taxes and more.
If you’ve dreamed of starting your own small business in 2023, you’re probably thinking about everything you need to do to set yourself up for success. Ideally, this means writing a solid business plan, considering your start-up costs, perhaps applying for a small business credit card, and determining whether you need to rent or buy space for your new venture. Of all these questions to answer and considerations, here’s what you should really be thinking about: hiring an accountant.
It takes time for a small business to grow and start making real money, so you may be wondering, “Why should I start paying people other than myself right away?” Small business accounting involves many steps, starting with having the accountant in the Having it by your side can save you a lot of time, potential hassle, and tax liability. That’s why.
What is an accountant?
Accountants wear many hats. At the end of the day, accountants are professionals who are responsible for keeping and overseeing financial records. “Bookkeeper” is another term you may have heard related to small business finances; the terms are sometimes used interchangeably, but they’re not the same thing.
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Bookkeepers perform some of the same tasks, but usually don’t have the same level of education as accountants, and are more focused on recording financial transactions than interpreting them. In short, an accountant can be a bookkeeper, but a bookkeeper doesn’t have to be an accountant. Another term you may hear is chartered accountant or CPA. This is an accountant who has passed the CPA exam and meets state licensing requirements.
As far as your small business is concerned, such professionals will help you manage day-to-day expenses, create documents so you can keep track of your business progress and finances, and oversee your tax returns to make sure you pay the correct amount and get all the deductions you owe.
How can an accountant help you from the start?
Once you decide to start your business, it pays to bring an accountant on board as they can really help you every step of the way. One of the first things you need to decide is how to structure your business. An accountant understands the legal and tax responsibilities involved in starting a limited liability company (LLC) versus an S-corporation and can help you choose.
Accountants can also help prepare you financially for future success by advising you on which accounting software you should buy. They can ensure that your financial procedures comply with government regulations. Remember, you definitely don’t want to be audited! They can help you take the right step with your business banking and learn how to keep your personal and business expenses separate.
Getting the financial foundation right with the help of an accountant can make things a lot easier if your business takes off and you find yourself in a happy environment of expanding, hiring employees, etc.
Remember, you don’t have to hire a full-time accountant to begin with – you can find one who consults on a regular basis and pay them as a contractor. If you know other small business owners in your area or where you work, ask around to see if any of them can recommend a good accountant. Hiring one person will take a lot of time and money to keep your small business growing and succeeding at its best.
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