There are going to be several professionals you will turn to as you start a new small business and enter into those first precarious years of operation when you hope to grow based on your initial projections. Since any number of things can become a roadblock or at least a hurdle that slows you down, it is helpful to have appropriate advisors to turn to. A small business accountant is one of those you should find as early as possible, even before you have set up your company. There are many ways they can assist you and help your company grow, namely:
- Formation advice- Every company is different, so it is prudent to talk with a small business accountant to help you determine whether you should be a sole-proprietor, general or limited liability partnership, LLC, S-corporation or C-corporation. Each has its own advantages and drawbacks from a tax and liability perspective.
- Accounting setup- It is far better to set your books up the right way at the start than to attempt to configure them differently later. Some decisions are difficult or impossible to change, such as changing your fiscal year, choosing cash or accrual reporting, classifying initial contributions used to set up the company, and other considerations.
- Financial statements- The financial statements should be set up to provide the key information you need to make sound business decisions. Some companies benefit by job costing, for example, so that they can see how much profit was made on each project and even on each phase, if desired. One company might be fine with a general category with multiple expenses or income items in it, while another might need a more complex setup so that they can see what aspects of their business are the most and least profitable. For example, a contractor would need to know if their time was best spent on new construction or remodeling projects.
At TaxCom, LLC, our small business accountants can focus on supporting your growth projections. We can provide you with a wide variety of financial consulting services and accounting services that will make it easier to operate your business and do so with optimal profitability. Reach out to us today to learn more about how we are a valuable resource and affordable option for small businesses.