If you have started a small business and have a limited budget, then you have likely spent some amount of time trying to determine where you can cut your costs and stretch the funds that you have available. One area that many business owners try to handle on their own is taking care of their business finances, rather than hiring a professional Sacramento Accountant. If you have a background in accounting, it may be viable; however, if you have no prior experience managing business finances and think you can learn as you go, you should reconsider. Trying to manage your own accounting system may hurt your business presently, as well as in the future.
Some of the ways that an accountant can benefit your small business are highlighted here.
During the Start-Up Stage
When you open a business, there are a number of different actions that you can take and systems that you will have to set up in order to create a solid foundation. An accountant can be of assistance in a number of different ways during this stage, including:
• Helping you determine the best business structure.
• Assist you with the financial analysis of your business plan.
• Suggest the proper accounting software.
• Offer assistance with opening a bank account for your business.
• Ensuring you have met all government requirements and regulations.
During the Operating Stage
Once your business is up and going, you will still have to maintain the accounting system that was initially set up by your accountant. Some actions that an accountant can provide include:
• Ensure that independent contractors are classified as that with the IRS.
• Explain the financial statements so you are able to understand your business finances.
• Oversee your business payroll.
• Prepare estimated tax payments.
• Figure out who should receive a W2 or 1099 form.
• Create end of the year financial reports.
During the Growth Stage
When it comes time to grow your business, having an experienced accountant in sacramento can be extremely beneficial. They can provide the following services:
• Determine growth areas by offering insight regarding inventory management, business financing, pricing and cash flow patterns.
• Provide advice regarding equipment purchasing and leasing.
• Help to prevent an audit from the IRS.
• Prepare and guide you through an audit if necessary.
These are just a few of the ways that the services of an accountant can benefit a small business owner.
