If you are looking to start a business and working with a bootstrap budget, you will no doubt be looking for areas where you can cut costs. Doing the accounting function yourself if you have no accounting background is not one of the areas you should consider. Instead, hire a small business accountant and see what an asset the accountant will be to your business.
Here are some top ways a small business accountant can help during this start-up or infancy phase of your business.
Sole proprietorship, Limited Liability Company, or partnership? There are several factors that should inform your decision to go with a particular business structure.
A small business accountant can advise you on what each structure will mean for you, from the costs involved in the formation to tax implications, limitation of liability, and what ongoing administration will look like for your business.
Financial Analysis of Business Plan
A well-prepared business plan will do well when you pitch it to investors and other financiers when seeking funding for your business. It will also help you create a realistic picture of where you see your business going.
The financial part of your business plan is an essential component and will be a focal point for investors and institutions such as banks. With the help of a small business accountant, you can get it right by preparing your business plan, which will set the foundation for your business.
Setting up Business Accounts
One of the best pieces of advice that a small business accountant will give you is that you should keep your business and personal accounts separate right from the inception of the business.
It doesn't matter how small your business may be or if it is a sole proprietorship. After explaining the importance of keeping the accounts separate, your account can help you put together the requirements for setting up a bank account for your business.
Compliance with Government Requirements
A professional small business accountant will know the government requirements and regulations on the accounting procedures you should follow. The accountant will put together the required framework, including resources such as accounting software to ensure your business is fully compliant right from the moment you begin operations.
A qualified and experienced small business accountant is invaluable when you are starting your business. Think of hiring one as an investment that will certainly pay for itself.
If you have additional questions, contact a local business accountant.