Starting a business is a scary proposition, even when you’re an expert in your chosen field. Many decisions must be made, and if you’re like most entrepreneurs, you’ve gambled much of your life savings on your new venture. The decisions you make have to be right.
Those who go into small business ownership with eyes closed are in for a rude awakening at tax time. The best way to prepare for tax day is to stay on top of expenses and revenues throughout the year — a challenge for many new business owners. The good news is that there are people who can help you make a go of it — trusted professionals who are happy to be a part of your business advisory team.
Building a Professional Team
A certified accountant is an integral part of any entrepreneur’s team. There’s nothing more important than your financial solvency. A trusted accountant will help you stay on track, manage expenses, and offer other services to help you prepare for your first tax day as a business owner.
Small Business Challenges
Here are 5 of the top challenges most small business owners face. A certified accountant can guide you through them, reducing stress levels and educating you on how small businesses work.
Cash flow. Cash flow is one of the most critical elements of business ownership. If you don’t have a handle on cash flow from the beginning, you may quickly find yourself in trouble. Managing cash flow isn’t difficult, but you do have to stay on top of it. And if you’re not used to tracking every dollar that goes in or out of your business, it may take a while to get used to doing this. Your accountant can help.
Expense management. Tracking and managing expenses are tasks that every business owner has to deal with. Many business expenses can be taken as deductions at tax time, reducing your overall tax liability. To benefit from these deductions, though, you have to have proof of the expense, which often means saving receipts and tracking your mileage every time you use the car for a business-related errand. Many accountants offer expense tracking tools and advice to help clients stay organized so that it’s not a mad rush to gather expense records at tax time.
Financial reporting. Financial reporting is another challenge for many new business owners. Preparing reports that reflect the state of the business can be overwhelming for one who’s never done this before. Profit and loss statements, income statements, balance sheets, cash flow statements…all these and more are necessary when trying to get a small business loan or prove the financial viability of your company. Many certified accountants are experts at preparing the financial reports that go with small business ownership. Let them take this task off your plate.
Financial forecasting. While financial statements give you a view of where your company is now, a financial forecast highlights where the business is headed. Financial forecasting is crucial to help you stay on track throughout the year, meeting sales and revenue goals and tracking company growth. Your accountant can help prepare forecasts based on your current financial performance and the goals you’ve set for the company.
Tax law changes. One of the most significant impacts on a small business is changing tax laws. The government changes the rules frequently, and it’s difficult to keep up with the changes that impact small businesses. Accountants stay on top of these things because they have to. When it comes time to prepare your tax return, your trusted accountant will do it right according to the most recent tax laws and regulations.
Adams Accounting Solutions is Your Small Business Partner
If you’ve recently started a new business, now is the time to consult with an accountant who understands the ins and out of small business ownership and can get you going in the right direction. The sooner you put processes in place to manage expenses, file receipts, and create financial reports, the more quickly your business will grow.
Adams Accounting Solutions specializes in small business accounting and tax preparation. We also offer business consulting services with an emphasis on operations consulting, tax preparation, payroll taxes, and internal control evaluation. If you’re new to the accounting challenges of business ownership, we’d love to talk with you. Give us a call or stop by our office in Overland Park for more information. We’ll help you get your new business set up for success!
