Launching a new startup is one of the most exciting things an entrepreneur can do. That first day of business holds so much hope and promise of great things to come. But like a marriage, the honeymoon that comes with a new business eventually wears off. Then the reality of dollars and cents tends to kick in. That’s when the business owner should be seeking the assistance of an accountant.
Individual accountants and group accounting firms are specialists in business finances. They know what it takes to keep a startup’s finances on track. They are also familiar with all things tax related. Between their financial expertise and their tax skills, accountants are indispensable to startups.
Are you in the midst of getting a startup off the ground? If so, here are some clear signs your business needs the help of an accountant:
You Have No Clue about Business Structure
Let us assume you are still in the early stages of deciding on your startup’s business structure. You can form as a limited liability corporation (LLC), a partnership, a sole proprietor, etc. Each of the different structures has its pros and cons to be considered. The fact that it’s all Greek to you is a clear indication you need the help of an accountant.
An accountant can explain each of the business structures in detail. He or she can help you determine which structure is best, based on both short- and long-term goals. And of course, there are tax advantages and disadvantages to consider as well. A CPA knows all of that.
You Know Very Little about Tax Laws
Federal and state tax laws are extremely complicated. Moreover, there are special rules that apply only to startups. Did you know that? If you are like a lot of startup entrepreneurs, your knowledge of tax law is limited. This is an obvious sign your company needs the help of a certified accountant.
Tax services are at the top of the list for most accounting firms, explains Gurian CPA Firm, one of many Dallas accounting firms capable of handling startup accounting. If for no other reason than to make sure your taxes are done correctly, you should be working with an accountant.
You Lack a Clear Financial Strategy
It’s one thing to have a great idea for a startup; it is an entirely different matter to have a solid financial strategy to go along with that idea. Establishing a financial strategy is one of the areas where entrepreneurs frequently fail. If you have no strategy for your company, you need to put one together. A certified accountant can be an invaluable resource for doing so.
You’re Looking at Quick Expansion
There are times when startups are designed to grow quickly through expansion and acquisition. If that is the strategy on which your startup was built, that’s fine. But understand you will face a range of financial decisions with every step of your company’s growth. You are going to need some sound advice.
A certified accountant can advise you on all sorts of financial matters. Should you decide to apply for a bank loan or seek private investment money, a CPA can also furnish the necessary documentation. In short, growth and expansion are made a lot easier when you are working with an accountant.
Launching a startup is anything but easy. Do not make it harder for yourself by making common financial mistakes that could otherwise have been avoided with the help of an accountant. Do you and your business a big favor by signing on with an accountant right away.