It’s not uncommon for a visionary with a big idea to sit down, jot some notes on the back of an envelope, and then get to work on a business plan. They’ve seen a gap in the consumer marketplace and know how to fill it. Before they know it, the doors are open, and products and services are flying off shelves and out the door. That’s when they realize they’re running like mad to keep their head above water.
Part of the reason it’s so difficult for new business owners to keep up initially is that they’re wearing too many hats. Once they start selling products, they realize there’s much more to keeping a business afloat than just selling. Administrative tasks also need attention, like accounting, bookkeeping, inventory management, and human resources. If the business is thriving, it’s more than one person can handle on evenings and weekends.
An Accountant Absorbs Some of the Burden
Budding entrepreneurs often don’t understand the importance of having an accounting professional on board before the business is actually up and running. But it’s a critical first step in building a viable and sustainable business.
A trusted accountant helps alleviate some of the burden of starting and running a new business. Here are just a few ways they can help with your business startup.
Advice. Accountants are pros when it comes to the ins and outs of various business structures. A certified public accountant (CPA) can help determine which business structure best suits your new startup. Should you consider a partnership? Do you need an LLC? Can you handle it as a sole proprietor? Or should you incorporate it? These are questions to consider when setting up your new business. Your accountant can advise you on the tax implications of each.
Organization. Accountants can also advise new business owners on the best way to organize the back office from the very beginning. Rather than stuffing receipts in a shoebox until tax time, they’ll likely recommend setting up files and entering receipts into an automated bookkeeping application such as QuickBooks Online. Having a back-office system in place makes keeping up with business growth in the early stages much easier.
Education. Many new entrepreneurs have started a business with a great idea, only to fail later on because they have no business background. While having a business degree isn’t a prerequisite to starting a business, nor is it a guarantee of business success, knowing a thing or two about business finance is helpful. Dealing with cash flow management, budgets, profit and loss statements, business expenses, EBITDA, and ROI is confusing and overwhelming. Your accountant understands all this and will educate you on the basics.
Goal-setting. Most accountants have experience with different-sized businesses, so they understand what it takes to meet company goals at every growth stage. An accountant will help you determine which goals are short-term vs. long-term and help you come up with a business plan designed to help you achieve the long-range vision you have in mind.
Tax preparation and advice. Having an accountant on staff or on call in your new business is critical when it comes to tax preparation and accounting needs. Many factors impact a company’s bottom line at tax time. Employing an accountant who’s well-versed in small business tax preparation and accounting is one of the best ways to ensure your new business gets off the ground — and stays in flight!
Adams Accounting Specializes in Business Startups
When you hire Adams Accounting Solutions, you get all this and more. We like to think of ourselves as part of the team. We work with you as you prepare to launch your new business, ensuring that you have the right systems and safeguards in place along the way. We also guide you through the tax preparation process, helping you make the most of any eligible deductions and preserving as much of your hard-earned revenues as possible.
If you’re thinking of starting a new business, call us at 913-888-9100. We’ll talk you through some of the things you need to know and help you get your new baby off to a good start!
