When you start a small business, you likely expect to do much of — or all of — the early work yourself. But hiring an accountant is a good investment to get your new venture up and running. Here are a few important tasks they can help with and how these will add to your bottom line.
1. Selection of Business Entity.
One of the first steps toward starting your business is to choose a business entity or structure. This is a far-reaching decision, though, because each option has tax effects, liability consequences, and reporting requirements. An accountant understands how to balance all these concerns and choose an entity that's manageable as a small business but that allows room for growth.
2. Starting Business Accounts.
Your new venture will need accounts of various types with various entities. An accountant can help you learn what's needed to start business bank accounts and credit lines and to choose the best ones for your needs. They can also aid in registering with state oversight agencies, the IRS, trade associations, and vendors.
3. Preparing for Investors.
Are you ready and able to present your business plan and financial documentation to lenders or investors? Do you even have a business plan? Can you make the case for your idea? Accountants work behind the scenes to ensure you have the tools and can speak enough of the lingo to make a solid and professional presentation.
4. Looking Over Contracts.
Contracts can be risky for new entrepreneurs. Without a lot of experience in contract language and without a good negotiating position, you may end up locked into agreements that aren't in your best interests. While an attorney will help you understand the legal jargon and consequences of contracts, accountants help make sure they don't include unexpected tax risks or undervalue your interests.
5. Setting Up Bookkeeping.
Finally, you'll need to set up a way to manage your finances once you start doing business. Even if you plan to do the bookkeeping work yourself, the accountant will help you start off correctly. They will assist with tasks like choosing software, creating a chart of accounts, learning where to enter transactions, balancing accounts, doing accrual entries, and preparing financial statements.
Could you use help in any of these areas? Most new business owners would answer yes. If that includes you, get started today by meeting with an accountant with experience in your industry today.
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