When you start a new business, you must take care of and consider many things.
Your business name, logo, products, and website are only a few of these. While you may be thinking about the funding for starting your business, you may forget about the bookkeeping aspect. Reconciled outlines how all new business owners can benefit from hiring an accountant from the beginning to keep their finances straight.
Organizing From the Start
Unless you have a strong background in accounting, setting up the books for your business can be incredibly confusing. When you hire an account right from the beginning, they can help you lay a strong foundation for success. Not only can an accountant suggest bookkeeping software and make sure your financial procedures are in compliance, but they can also assist with any financial forecasts for your business plan.
An enterprise accounting service such as Reconciled can help you determine how to structure your business. Many startups benefit from forming an LLC for the limited personal liability as well as short- and long-term tax benefits.
Your accountant can help you with daily operations as well. You must enter sales, purchases, wages, and any other financial activity from your business. All the information must be entered in specific categories and in specific ways to ensure you’re in compliance with state and federal regulations. Depending on how much activity your business enjoys, this can add up to many hours of work each week. An accountant can take this additional work off your plate, ensure accuracy, and give you all that time back to work on other parts of your business.
Financial Reporting and Taxes
On a monthly or quarterly basis, your accountant provides financial statements, such as a profit and loss statement and a balance sheet. These show the financial status of your company, both as a snapshot of the month and over time. Knowing this information helps you make big business decisions, such as what purchases you can afford or whether your pricing is covering your materials and time.
In addition, at the end of the year, your accountant uses the reports and accounts to file taxes for your business. They’re a great source for ensuring the deductions you take are accurate and that everything’s in order in case of an audit.
When you’re ready to grow your business beyond the startup stage, an accountant remains beneficial. One of the most useful things they can do in this case is look over your financial history, then provide financial forecasts, as Bench explains, and cash flow analyses, so you understand where your money is being spent and what to expect in the future. If you plan to hire employees or contractors, an accountant aids in payroll, specifying taxes and fees to be withheld and sending out W-2 and 1099 forms.
Any accountant worth their salt will also know where to look for a payment system that works well for you and your clients. Using a feature like an API to retrieve bank account balance in your app or online payment system is a big win for both your company and your clients. You avoid expensive credit card fees while your clients get the peace of mind of knowing they have the funds available to make payments.
Don’t Underestimate the Benefits
Some entrepreneurs think hiring an accountant from the beginning is too expensive, but as you start and grow your business, you can see just how beneficial they are. From organizing your business at the get-go to growing it for the future, an accountant helps you not only stay compliant but stay profitable as well.
Many accountants can work in a virtual capacity, which makes communication and interaction much easier. This is where Reconciled really shines. Reach out to find out how their virtual bookkeeping and accounting services can help you!
Are you a business owner or manager in need of the best virtual bookkeeping and accounting services? Look no further than Reconciled, a leader in setting the standard for consistency and quality. Find out more today by calling 802.242.1352!
Article by Corinne Hammond