Heath Hendrickson of Caledonia, NY is a big advocate of small businesses bringing in an accountant to take their company to the next level. So much of business success hinges on timing. Today, Heath Hendrickson of Caledonia, NY will touch on some of the best times to bring an accountant into the fold.
Businesses who are able to afford the services of the accountant in the early going are wise to seek their counsel for their business plan. A professional accountant can upgrade a company plan by adding financial projections and relevant statistical reports. This will help map out a future of success for an emerging business.
Accountants can be great assets when determining the legal structure of a new business. Companies can be categorized as sole proprietorships, limited liability companies, partnerships, and corporations. Each designation comes with different consequences. Accountants can help a business owner navigate not only the tax consequences of each designation but the liability factors. Some structures leave an owner liable for any damages caused by their company. Depending on the type of the business, this can grow increasingly risky.
The most common time to bring on an accountant is when a small business feels like handling the finances is turning into the majority of their job. When an owner is losing the ability to focus on the parts of the business have helped the business become successful, it’s time to add an accountant to the fold.
Tax season is a common time to bring on an accountant as small business owners realize that dealing with government paperwork can be a truly grueling process. When the time comes for the first tax filing for a small business it needs to be done accurately and within all compliance guidelines. A trained accountant can ensure that happens. While taking care of the taxes, a skilled accountant will be able to provide advice on ways the business could save money in the year ahead. This is often when small business owners decided to add the accountant full-time.
Finally, in the rare event that a company is audited, they need to bring on a professional accountant as soon as possible. Ideally, companies will have a full-time accountant on board before the audit process as they will be able to ensure a small business never violates any tax laws that would garner the attention of the government. If an audit begins prior to that hire, the only solution is to bring on a professional as quickly as possible.