Creating a startup can be energizing and hectic. But since you’re starting with a tight financial budget and limited working staff, you do multiple roles to grow your company.
Sure, hiring a certified public accountant is more costly than doing the books yourself, but their skills and expertise can actually provide multiple benefits for your startup in the long run. So if you’re still not convinced,
Here’s a short list of how a certified public accountant can help your business.
1. Choosing the proper business structure
Choosing the right business structure for your startup is essential since it will determine your tax implications, documentation, capacity to raise revenue, and other business operations. A certified public accountant can help you determine whether a sole proprietorship, partnership or limited liability corporation (LLC) is the most suitable to start.
Your structure will depend on your business goals, financial need, personal risks, and liabilities. That’s why it’s a good idea to discuss each option with your certified public accountant to determine which aligns with your business objectives the most.
Although you can change your startup’s legal structure in the future, there’s still a risk it can lead to business and legal complications, like disorganization and tax consequences, if you’re not careful.
2. Creating an innovative business plan
A business plan can help you structure a business goal and strategy for achieving it. Collaborating with a CPA can help you determine the viability of your business and make your goal more realistic since they can calculate financial data.
It’s a plus if you can find a certified public accountant that has extensive experience in your industry since they already know the ins and outs of what makes a startup successful.
Having a cohesive business plan can also be helpful in getting potential investors. Since they’ll be able to get to know your business and show them how much careful thought you’ve put into each aspect.
3. Managing your business finances
If managing the books isn’t your strongest suit, let a trusted certified public accountant handle it. They’ll be able to keep it organized and accurate so you’ll have time to focus on other aspects of your startup.
From your business financial statements, they’ll also be able to develop a budget to minimize expenses and optimize revenue.
For efficiency, they can also set up accounting software so it’s easier to keep up with your records and minimize errors. If you opt for a cloud-based one, you can access your financial data anytime and anywhere in real time.
4. Ensuring tax compliance
Admit it, tax season isn’t the most exciting time of the year. So instead of stressing out about filing your taxes, your certified public accountant can handle it for you. Since they’ll already be familiar with your financial statements, paying your business taxes will be a breeze. So you won’t have to worry about missing deadlines and paying any penalties.
Your CPA will also know which tax exemptions and credits your startup is eligible for so you can lower your tax bill. They’ll also keep up with the latest tax law changes, so they should be able to let you know if the adjustments will affect your startup.
5. Predicting financial forecasts and trends
Your CPA can also keep track of your startup’s performance by analyzing your financial metrics. This will let you determine where you stand regarding industry standards and identify financial trends.
They’ll also be able to forecast the financial future of your startup based on previous financial data, like your revenue, sales, expenses, and cash flow. This way, you can develop a smart financial plan and make informed decisions going forward.
It also allows you to identify potential financial risks to create a contingency plan to minimize them in case unforeseen events happen.
6. Providing business advice
Having a certified public accountant on retainer can be beneficial since you can ask for advice on handling your startup better. They can offer valuable insights on how to grow your operations and correct any potential risks before they impact your statements. You can also consult them for operational changes that you can implement to cut down your costs.
If your startup needs financial assistance, your CPA can also assist you in processing loans or bank financing. While if you’re ready to expand, they can also help you process real estate acquisitions or phantom stock agreements. If you need help with tax planning, they can also assist you with optimizing exemptions while staying compliant.
Looking for a trusted certified public accountant?
If you’re looking for a dedicated certified public accountant in Princeton, New Jersey, you can trust Lear & Pannepacker to provide one for you. They offer a wide range of accounting services, such as auditing, bookkeeping, business advisory, and tax services. No matter what industry your startup is in, their experienced team has your back. For questions and inquiries, feel free to contact them now!
