As an entrepreneur, you tend to be all things to all people. You are the chief executive officer as well as the chief sales person and the chief light bulb changer. One of the keys to being a successful start-up owner is to understand you do not know everything. You need to surround yourself with good people who are experts in the areas you are not. Hiring an accountant will prevent you from making costly mistakes and may even help you make more money.
Keep The Feds Away
If you plan to have employees, then payroll and taxes become a significant issue. You can hire a payroll company to handle your payroll but they charge for the service and often need a cash reserve for new companies. Payroll and taxes are two areas you want to do right. People depend on their paychecks to survive and the IRS can charge as much as 25 percent in penalties for not depositing payroll taxes properly and within the allotted timeframe. Make sure your accountant has payroll knowledge during the hiring process.
Running Your Business
The Association of Chartered Certified Accountants has defined some best practices for accountants. An accountant organizes data and processes financial decisions. At the end of the day, you want to know how much money you make and how to make more. Your accountant’s job is to organize your revenue and expense information in such a way that you understand where your money comes from and who you need to pay. This allows you to make informed decisions about creating new revenue streams or cutting old expenses.
There is a difference between a bookkeeper and an accountant, one of the most important being that a bookkeeper does not prepare financial statements. When applying for a loan, you need financial statements. You also need them to attract investors, write a business plan, and for almost any other function of running a business. An accounting degree is not necessary to be a bookkeeper. But a degree and certification is necessary to become an accountant.
Make Even More Money For You
For-profit businesses can take a page from the nonprofit sector when it comes to the financial officer’s role. One of the jobs of the accountant or the financial executive is to find more money for the company. One of your accountant’s job functions need to be researching other funding streams, including grants, government contracts, and other paperwork heavy revenue opportunities.
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