Small Business Accounting – Startup Decisions

What you need to know as a business owner when planning for your small business accounting service.

Business Startup, Doing it all myself?

Starting a business is an exciting, time consuming and in many respects, an overwhelming experience.

The tendency for many first-time business owners to adopt the “Do it all myself” attitude can lead to problems.

The motivation to keep overhead low is rooted in sound business decision making. Yet, not hiring a professional bookkeeper to keep track of income and expenses can spell disaster. The fact is, a new business owner has a lot of things to consider. Making sales and generating money is at the top of the list. Doing the bookwork to account for it all, too often finds its way to the bottom.

If you take a close look at the statistics for business failure, approximately one third of the reasons new businesses fail is rooted in poor business finances. Having an accounting plan in place prior to startup is an even better idea. However, once a new startup is up and running, keeping track of and allocating the business’s money must become a top priority.

Hiring a Bonafide Bean Counter

Instead of adopting the “Do it all myself attitude, there is another path for the new business owner to follow.

It’s called the “I don’t have to know everything” plan. Realizing that there are business processes you need help with, can be a freeing experience and allow for other professionals to play a part in the business’s success. One of the first places to start is hiring a “Bonafide Bean Counter”. Certainly, that would involve a bookkeeper, and if the business is more complex, or has a corporate structure then an accountant for sure.

Bookeeper Versus Accountant

Not every business requires the services of an accountant right away.

Initially, keeping track of income and expenses, and establishing a record keeping system to handle the financial aspects of the business, can be accomplished by a professional bookkeeping service.

It may make sense to reach out to an accountant early in the process regarding tax planning, or if the structure of a business calls for more complex decision making, a qualified accountant is a great person from which to seek advice. As a business grows, and employees are added for payroll an accountant is going to be a money saving decision.

Business Startups Require Decisions

Collecting and reporting sales tax, obtaining a sales tax number, getting a federal identification number, collecting payroll taxes and their reporting are questions which face every new business owner.

But it doesn’t end there. There are considerations to be made regarding which type of accounting method to use. Cash or accrual? And if you are in the beginning stages of forming your new entity, then you must decide which form does the business take? Will it become a partnership, a sole proprietorship, LLC, a C or S type corporation?

904Tax Makes it Easier

At 904Tax we have been serving the needs of new startup businesses for years. We can provide bookkeeping services, QuickBooks training, and are their as your accountant should you and your business need us. We can help with everything from tax planning to preparing your annual returns.

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Jacksonville, FL 32224

Phone: 904-999-4337

Fax: 904-425-1232