An accountant is far more than a tax preparer, especially for owners of a new business. When starting in a bold new venture like a small business, you need all the expert advice and support you can get in managing the financial aspects of your business, from startup to operations to grow most efficiently and effectively. If you're wondering what Charlotte accountants can do for your new business, read on to learn just 10 of the ways an accountant can help, no matter in which stage you currently find yourself.
An accountant can help you navigate all the many requirements and take the necessary steps to start your business and establish a foundation of structure and strategy for your business to succeed.
- Advise on a Legal Structure
The Small Business Association reports that 70% of small businesses set up as a sole proprietorship, no doubt because that's the simplest structure to set up. The problem is, it may not be the best legal structure for your business. How you structure your business can have a significant impact on tax responsibilities and benefits and legal liability limitations and protections, among other vital elements that can make or break a business. An account can help you figure out the best legal structure for your business.
- Build Financial Strategies and Statements
An accountant can help you answer critical questions, such as how many employees to hire and what revenue targets to set for the year. An accountant can also help you develop a realistic working budget with your business goals in mind and set up the financial records and software you will need to stick to it.
- Guidance on Compliance
Every business is beholden to one or more government authorities to comply with laws and regulations. From payroll to OSHA requirements, an accountant can help you ensure your systems meet full compliance and budget effectively to make whatever changes are necessary to achieve that objective.
- Identify Key Performance Indicators
The only way to know how your business is faring is to establish metrics to measure your performance. Tracking how much money you bring in the door is hardly sufficient, yet the parameters for different businesses may well differ. An accountant can help you identify the performance indicators most relevant to your business type and goals.
During Normal Business Operations
Once you've opened for business, an accountant can help you implement and maintain the systems and strategies you've set up for your business.
- Analyze Your Financial Data
As your business operates from day to day, you'll need to regularly evaluate how well you meet your key performance indicators. Only by analyzing your financial data can you do that. Financial records can be complicated to navigate, which is why most smart business owners employ an accountant (or a team of them) to help them do so.
- Assist With Receivables and Collections
An accountant can help with the fundamental daily requirement of ensuring that your business actually gets paid by your customers and clients. This allows you to focus on what you do best: developing and delivering new and better products that meet those clients' and customers' needs.
The same bodies with which an accountant can help ensure you maintain compliance also have regular reporting requirements. Developing these reports can take up much of your time and energy that would be better applied elsewhere. Whether it's your tax filings, a revised budget, or a shareholder report, the right accountant can help you get it done right.
As Your Business Grows
An accountant can help you analyze business performance and identify areas of weakness and strength. An accountant can also advise you on how best to grow your business and help you manage that process.
- Manage Debt
Debt can be one of the biggest destroyers of businesses. Therefore, one of the greatest benefits of having an accountant on your team is expert assistance is keeping that debt (including related interest) to a minimum and paying it down as fast and economically as possible.
- Avoid Tax Audits
An accountant can help you avoid making the reporting mistakes that often lead other businesses into tax audits. If you do get audited, your accountant can help you navigate it as painlessly and with as few financial repercussions as possible.
- Identify Areas for Growth
Your accountant can help you and your team strategize opportunities for the future by identifying key areas to invest in new resources.
No matter what stage your businesses is in, Scott Boyar CPA and small business tax advisor can help you set it and keep it on course. Find out why so many Charlotte-area business owners consider Scott Boyar the best accountant in Charlotte.