You just started your own business. Do you need an accountant, or should you handle those responsibilities yourself? Many successful companies work closely with an accountant. These professionals will be able to guide your business through every financial stage. Here are a few reasons why your small business needs an accountant.
When To Work With an Accountant
Working with an accountant saves small businesses from lost time and money. Plus, they can alleviate some of the headaches when tackling financial responsibilities. Business owners should ask for help right from the start. Take a look at these vital points in your business when you need an accountant.
Forming Your Business
You should work with an accountant during those first stages of your business. These professionals can help you write a business plan. A plan can put your goals down on paper rather than taking the wait-and-see approach. Along with that, the accountant can advise you on the best entity structure for your business. You might think that a sole proprietorship is the best option, but an LLC could have additional benefits. Many accountants can even assist with bookkeeping services or help you set up the right software for the job.
Compliance and Tax Issues
After you have your business plan and bookkeeping software, you still need help from an accountant. Many businesses have to worry about compliance issues. These problems can be stumbling blocks for many owners. You might want to ask for assistance from an accountant. Sales tax compliance is a sore spot for many businesses. You must comply with local tax laws if you are shipping any products over a state line. While some bookkeeping apps can help, you need an accountant to get started.
Payroll is another consideration for many businesses. Labor and wage compliance issues have been known to sink profitable companies. Tax programs and apps can ensure you are always compliant with these issues. However, you will want an accountant to check in on a quarterly basis.
There are other reporting requirements to consider. You must send those reports to local licensing agencies or creditors. For those with complex tax issues, you might be liable for other types of taxes or fees. If you need to report on your financial position for credit purposes, make sure to work with a firm offering small business accounting services.
Do You Need an Accountant?
You might think that you can handle these responsibilities by yourself, but accounting is not a DIY task. Small businesses are more successful when they work with an accountant. Yes, you might be able to take on those basics, but you should consider working with an accountant for those complicated matters. These individuals are financial professionals who can help keep your business on track as you plan for the future.
You will want to work with an accountant throughout the year, not just during tax time. Many accountants will meet with you at the end of the year. They will go over your finances and discuss any issues concerning your taxes. Tax planning is not the only reason an accountant needs to meet with you. Specific compliance issues, such as payroll tax underpayments, are easier to fix before filing those year-end reports.
Don’t forget to take advantage of your accountant’s expertise throughout the year. Planning for your business should be a year-long process. It could be too late to prepare your small business for penalties or fees when tax time is nearing.
Accountants are there to help every step of the way. You should meet with your accountant on a quarterly basis. These meetings will ensure that everything is on track and that your business is growing correctly. Sometimes, a company can grow too fast, leading to problems down the road.
You always have to worry about your quarterly tax payments. As the income increases, so do tax liabilities. Your initial estimated tax payments may not be sufficient if you experience a surge in your business. By scheduling regular meetings with an accountant, you can avoid those underpayment surprises at tax time.
Often, business owners are too close to some problems. Yes, business owners know their company better than anyone, but looking past those blind spots can be difficult. With an accountant’s help, you can take a look at the big picture, which can help the business continue to grow.
Find a Small Business Accountant
Now that you know the importance of working with an accountant, you need to find the right one for the task. Even if you want to handle your finances by yourself, you should have an experienced accountant on hand to get solid advice. Think of an accountant as a small investment for your business. With their help, you can make the right decisions for your business. Remember, many successful companies work with an accountant for their financial needs. Now is the time to find a qualified accounting professional to assist with those financial duties for your small business.
Need an Accountant for My Small Business?
At TMD Accounting, we understand the needs of small businesses. Our family-owned and -operated accounting firm has been serving the residents of Gloucester County for over 40 years. We provide you with affordable, reliable, and convenient options for your small business accounting needs. Our team can help with taxes, bookkeeping, and payroll services. Don’t handle those essential responsibilities by yourself. Schedule your consultation by calling 1-856-228-2205.