03 Jun 2015

Here is a great article I found about having a consultation with professional accountant before starting your business.

A1 Accounting & Business Solution can help you through your journey. 

If you are bootstrapping, or starting a small business on a limited budget, you have probably spent some time trying to figure out where you can cut business costs

 and do more on your own in order to stretch the funds you have available.

One area you may consider doing it yourself instead of hiring it out is accounting. If you have an accounting background and a solid understanding of business

finances, then this may be a good place to cut costs.

However, if you lack experience in managing the books of a business and expect to learn as you go, you should think twice. Managing your own accounting system

incorrectly can hurt your business not only now, but also in the long-term.

Here is a rundown of the things an accountant can do for a small business owner. Review the list carefully, especially if you’re still unsure why an accountant may

be a good resource to add to your small business team.

During the Start-Up Process

When you start a business, there are a number of actions you need to take and systems you need to set up in order to create the foundation of a successful business.

Here are some ways an accountant can help:

1. Determine the best business structure (i.e, sole proprietorship, LLC, corporation, partnership) for your situation

2. Assist with the financial analysis in your business plan

3. Provide advice on the type of accounting software you may need

4. Provide advice and assistance on opening a business bank account

5. Make sure your accounting procedures comply with government regulations and requirements

6. Provide advice on how to track expenses during your daily business activities

7. Explain the importance of keeping personal and business expenses separate

During Your Regular Business Operations

Once your business is off the ground, you will need to maintain the accounting systemthat your accountant helped you set up. Here are some specific actions

your accountant may take to assist you on an ongoing basis:

8. Help ensure that your independent contractors are classified as such (and not employees) by the IRS 9. Explain your financial statements so you can understand the ins and outs of your business 10. Oversee company payroll and payment processes

11. Provide advice on estimated tax payments you should make during the year

12. Determine when, and to whom, you should send W2 and 1099 forms

13. Close out your books and create financial reports at the end of the year

14. Compile and submit your taxes, financial reports and all necessary paperwork to the IRS

During a Business Growth Stage

When you are ready to grow your business, your accountant can be an integral resource who provides advice and helps you manage the process.

Here are some examples of what an accountant can do:

15. Help you determine areas for growth by providing insight on cash flow patternsinventory management, pricing and business financing

16. Provide advice on property and equipment leasing and purchase

17. Help you prevent getting audited by the IRS

18. Prepare you for and guide you through an audit, if necessary

19. Create financial forecasts so you can make better decisions in your business

20. Work with you to create a business budget that will support your business goals

21. Provide advice and resources to assist you with the sale of your business

These are just some of the ways accountants can work with small business owners. You can opt to hire an accountant for all of your financial activity, or you

can choose a combined approach that limits his or her hands-on activity, reducing the expense. For example, you can hire an accountant during the start-up

phase, and have him/her handle your annual reporting, but work with a bookkeeper to manage your books on a regular basis. In fact, a

bookkeeper and an accountant can form a very efficient accounting teamfor your small business.

The most important thing you can do when it comes to your business finances is recognize when you need to enlist the help of a professional, and

then find an accountantwho will help maintain the fiscal health of your business.