Staring a business can be extremely rewarding both personally and financially. However, it can also be confusing and risky, even in a robust business environment like Southern Utah. If you want to succeed long-term, it’s usually wise to get a little help from someone with experience. This is especially true when it comes to keeping your finances in order.
Most successful business owners get some good advice along the way. That doesn’t necessarily mean hiring employees, but it may mean finding a professional accountant or CPA. Accountants can clarify the regulations and financial nuances of opening a business. They can also ensure proper tax filing, track expenses and income, and basically keep you running in the black.
If you aren’t sure you need an accountant or are reluctant to retain one, these five conditions could be trying to tell you that it’s time to hire a professional.
- You’re writing a business plan. This is where a lot of people should hire an accountant, but do not. Your business plan needs to be financially sound and realistic, based on accurate projections and proper setup. Professional accountants have financial knowledge and insights that can save you time, money, and future legal troubles.
- You’re making money. Though it may take a while, when you start turning a profit it could be the perfect time to hire an accountant. As a matter of fact, according to Kiplinger’s, the more money you make, the higher your chances of being audited. In fact, just owning a business increases your risk. Wouldn’t you rather have an accountant you trust before you get audited?
- You’re confused about structure. The way you set up your business will have big implications for your future. Should you be a sole proprietor, LC, DBA, or LLC? Speak to an accountant about your goals, worries, and tax preferences. They can help you avoid unnecessary liabilities, and enjoy the greatest tax benefits from owning a business.
- You feel disorganized. Keeping track of expenses, invoicing, financial statements, tax deductions, and more can really throw a wrench in your plans for independence. If you’re beginning to feel overwhelmed, uneasy, or ready to delegate, it’s time to get some help. An accountant can stay on top of your finances and keep you up to date on what’s going on, without you having to babysit.
- You need cash flow. Most startups struggle with cash flow. Perhaps you need to find the leaks in your financial planning. Maybe you’re considering a business loan or overdraft. Before taking action, speak to an accountant. They can improve financial management for better cash flow. When getting a loan, they can provide essential data and help you decide which terms and conditions are best for you.
In general, any time you’re faced with decisions, experiencing growth, or have to deal with government regulations (hint: taxes), it’s best to have a professional accountant on your side. With help from an accountant, you can focus on the ideas and vision that brought you here, knowing you’re in good shape for future growth in Southern Utah and beyond.