Proper accounting practices are an integral part of any business. Whether you’re a small company wanting to expand or a big-scale business hoping to thrive, managing your finances and ensuring your financial health can make all the difference. It is all the more necessary to set a solid accounting practice in place if you have a startup. This is where hiring an expert accountant comes into the picture.
It’s important to understand that hiring an accountant is more than just recording your financial transactions and handling your tax-related matters. In this article, we will share the importance of getting an expert accountant for your startup. We will also discuss all you need to know about their roles and responsibilities during the initial business set up and when it’s up and running:
1. Initial business set up
Starting a business isn’t a walk in the park because you must make many considerations to set your startup on the right footing and help it grow over time. During the initial stages of setting up your business, your hired expert accountant will:
- Identify the fittest structure for your business (sole proprietorship, partnership, or corporation).
- Assess your initial finance, such as capital outlay, in consonance with your business plan.
- Identify the accounting software or tool best suited for your startup.
- Assist you in opening a business bank account.
- Help set accounting guidelines according to the government regulations.
- Ensure that you separate your personal and business expenses.
2. Daily business operations for tax-related matters
Once your startup has started running, the experts will go on with their day-to-day operations. One crucial task is dealing with tax matters. In dealing with these matters, they will:
- See that all your independent contractors are categorized by the IRS.
- Inform you of the predicted tax payments required to pay the entire year.
- Accomplish sending 1099 forms and W2 to the appropriate agencies.
- Compile your taxes and all other necessary paperwork and file them to the appropriate department.
3. During the actual business growth
For the most part, your hired accountant is tasked to maintain your business’s financial health, apart from mainly tracking your financial transactions and filing taxes. This stage is to ensure that your books are kept in order so that financial growth is achieved. On a more specific note, here’s what your accountant will accomplish daily:
- Identify the areas of opportunities susceptible to growth.
- Offer insights on inventory management, cash flow patterns and business financing.
- Advise you on equipment and property leasing and purchase.
- Prevent your business from getting audited by the IRS. In case of an audit, however, they’ll guide you through the process.
- Provide financial predictions for better and informed decisions.
- Create a worthy financial budget to support you and help you achieve business goals.
At this point, you now know the importance of setting proper small business accounting and how hiring an expert accountant helps your business every step of the way. From the initial company set up to dealing with taxes down to your actual business growth, hiring a business accountant for your startup can make all the huge difference. If you do not have a capable in-house accountant, do not hesitate to outsource this need before you face financial issues!
Are you looking for accounting services for your small business or startup? You’ve come to the right place! Our experts at Measured Growth CPA offer accounting services in Toronto, Ontario, along with various packages that are tailored to your needs. Schedule a meeting with us to take our service offerings!