Owners must use accountants from day one
July 23, 2012
Money is often tight for small businesses during the first few years of operation. After spending whatever capital was invested on necessary things, like overhead charges for the storefront, payroll and computer technology, they usually struggle to break even for years. A number of leaders believe that when a business starts turning a profit, professional help can be hired, including an accountant.
However, it may be more appropriate for a company to hire an accountant from day one, before operations with clients are even underway. Though the firm may not yet be in the black, if money is coming in and going out, who better to handle the business' accounting software than someone trained to do so?
Not simply for tax season
Especially when running start up businesses, owners may believe they only need to hire an accountant for tax season. Hiring at the beginning of a company's life cycle will enable the leader and professional to develop a beneficial and worthwhile business relationship. This can go great lengths to ensure the accountant is looking out for the best interests of the firm, rather than cutting corners.
The Houston Chronicle reported that only relying on an accountant for tax filing purposes is one of the biggest mistakes a small business owner can make. The source said that taking care of the software programs, planning finances and keeping the company legally compliant are among the other functions a professional can complete.
Beneficial from the first day on
Many experts believe that owners should at least consult with an accountant before opening their doors. According to International Business Times, a business leader can speak with professionals, who can help him with planning. Making a financial plan before the company opens often saves the owner time, money and trouble in the future, the source specified.
Accountants can also often catch deductions and other write offs that small business owners often do not catch. The International Business Times reported that these factors that go undeducted often include child care, healthcare, travel and home office expensive. Making sure the owner is compliant with IRS tax deduction rules from the beginning of operations can often lessen the chance the company will have to go through an audit.