This Is the First Person Every Small Business Should Hire

Your business needs a financial management hero.

key points

• There are many steps involved in setting up a business.
• An accountant can help you every step of the way from setting up your business structure to paying taxes and beyond.

If you’re dreaming of starting your own small business in 2023, chances are you’re considering everything you can to set yourself up for success. Ideally, this means writing a solid business plan, considering your start-up costs, perhaps applying for a small business credit card, and figuring out whether you’ll need to rent or buy space for your new venture. will be required or not. Among all these questions to answer and aspects to consider, here’s one you should really be thinking about: hiring an accountant.

It takes time for a small business to grow and make real money, so you may be thinking, “Why would I start paying someone other than myself right away?” Small business accounting involves a lot of steps, and having an accountant in your corner from the start can save you a lot of time, potential headache and tax liability. Why here

What is an accountant?

Accountants wear many hats. Ultimately, an accountant is a professional who maintains and oversees financial records. “Bookkeeper” is another term you may have heard in connection with small business finances; The terms are sometimes used interchangeably, but they are not the same thing.

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Bookkeepers perform somewhat similar tasks, but generally do not have the same level of education as an accountant, and they focus more on recording financial transactions rather than interpreting them. In short, an accountant can be a bookkeeper, but a bookkeeper is not necessarily an accountant. Another term you may hear is Certified Public Accountant, or CPA. This is an accountant who has passed the CPA exam and met state licensing requirements.

For the purposes of your small business, this type of professional will help you manage your daily expenses, create documents so you can track the progress and financial status of your business, and oversee tax filings to ensure Make sure you are paying the correct amount. and getting all the deductions you’re owed.

How can an accountant help you from the start?

The reason for bringing an accountant on board once you have decided to start your business is that they can really help you every step of the way. One of the first things you need to decide is how to structure your business. An accountant will know the legal and tax liabilities involved in starting an S-corporation versus a limited-liability company (LLC), and can help you choose.

An accountant can also set up your business finances for future success by advising you on which accounting software you should purchase. They can ensure that your financial processes are in line with government regulations. Remember, you definitely don’t want to get audited! And they can help you take the right steps with business banking, and learn how to keep your personal and business expenses separate.

Laying out the right financial foundation with the help of an accountant can make things a lot easier for you if your business grows and you find yourself in the happy circumstances of expansion, hiring employees, and more.

Remember, you don’t have to hire a full-time accountant right out of the gate—you can find one to consult regularly and pay them as a contractor. If you know other small business owners in your area or line of work, ask around and see if any of them can recommend a good accountant. Hiring one will take time and money to get your small business in the best possible shape to grow and succeed.

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