When going through the process of starting a business, there are quite a few processes that must occur before you start making any money. To most, these tasks prove to be intimidating, but they do not have to be, especially if you choose to work with a CPA.
Business owners in the start-up phase of their entrepreneurial endeavors have a lot of decisions to make — allocation of funds, being one of them. Now, it’s entirely reasonable to be wary of where your money is going, however, investing in a quality CPA is only going to help you achieve your goals in a cleaner and potentially more efficient manner.
Let’s go over a few ways a CPA can help you start your business
1. A CPA can help you build or assess your business plan
Consulting a CPA while you’re writing a business plan can be incredibly helpful. They’re able to strategically determine the specifics of your budget, and how your business costs fit within said budget. When push comes to shove, your business is going to need to have all of its ducks in a row, and if it doesn't, things could get out of control. A CPA is there to make sure that doesn’t happen by taking everything of monetary importance into account.
2. A CPA can determine your tax responsibilities and make sure you stay IRS compliant
Just about one of the worst things you can do as a business owner is getting on the Internal Revenue Service’s naughty list. Tax laws change and you may not be made aware of this, next thing you know, you get a letter in the mail with a hefty fine because of a missed tax. If you have a Certified Public Accountant, you can rest assured knowing that someone is looking out for situations just like this.
3. A CPA can help you decide what business entity you should choose
This is one of the first questions you’ll encounter when you’re starting your own business, and it can be daunting, especially if it’s the first time you’ve done this. Should your business be an LLC? A C-Corp or an S-Corp? Maybe it should just be a sole proprietorship. There are many implications of each business entity type, including how your business will be taxed, how much personal liability you hold, etc. A CPA is going to tell you what’s best for you and your company.
4. A knowledgeable CPA can help you plan your deductions
We all know you can deduct certain portions of your taxes, but do we know exactly how much and what type of expenditures qualify? Turns out, it gets a bit more complex than just writing off your office space and new laptop. A CPA can save you a lot of money this way, and you don’t have to worry about it at all. Use the extra time you saved worrying about deductions to scale your business more effectively. You’ve heard it more than once before: time is money.
How do I find the right CPA?
Chris Haro, CPA and his team have over 20 years of experience in accounting and tax preparation services. Their financial experts work from two locations in California to offer high-quality services for businesses and individuals alike. We cover individual tax return filing, payroll, financial planning for individuals, bookkeeping, financial statements for small businesses, corporate tax return filing, and much more.