New Business Owners Have Several Choices for Accounting Services
Author: Keith Huggett
Starting a new business is a tremendous challenge. You have to design and create products and/or services, establish a brand, find customers, fill orders, etc. You also need to figure out what you spend and what you take in, maintain a positive cash flow, perhaps deal with payroll and certainly manage your tax obligations.
If you don't have the accounting expertise necessary to do this, there are a number of ways to handle your financial books. Here are four common options:
- Do it yourself. Some entrepreneurs who have no accounting or tax experience manage their own financials. Dedicated software can help, but you still need to understand the basics of accounting. If you take this on, you risk classifying income and expenses improperly, which will make it harder to analyze your company's performance and meet your tax obligations accurately. This is risky for anyone but the smallest of businesses.
- Hire a bookkeeper. Bookkeepers can do a satisfactory job of entering information into a pre-configured system. Most are not experienced enough to set up an accounting system, though, and they're not qualified to give you tax and planning advice.
- Hire a CPA. The right CPA can do things well. But CPAs practicing solo have the same challenge that you do: keeping their own businesses running. And you're limited to the expertise of one individual.
- Hire an accounting firm. Accounting firms typically have a mixture of CPAs along with other accounting and business professionals, and support staff. These days, they're also well-versed in technology. They can set up your bookkeeping system and help you in myriad ways, while basic data entry is done by non-chartered accountants and bookkeepers. This model can provide the expertise that you need, when you need it, and save you money.
Accounting is a time-consuming, unfamiliar process for most new business owners. It's very familiar to us at The Tax Office. We can handle every aspect of your financials, from online bookkeeping to payroll to tax planning and preparation to general business management and complete accounting. Contact us to get started, so you can focus on what you do best -- building your business.
