A startup needs care and nurturing in order to grow, much as a newborn does! If you’re interested in giving your startup the best “care and feeding”, you’ll greatly benefit from this quick guide. We’re going to share some beneficial accounting options for growing startups.
Using all of this advice will help you to ensure that you build a strong foundation for profitability and growth. Without our tips, you may be prone to accounting snafus which make it harder to run your business properly.
Are You Running a Sole Proprietorship?
If you’re going it alone, at the start or always, your needs in terms of accounting will be dramatically different, versus what a bigger company would typically require. However, you should know that even sole proprietorships will benefit from accurate and regular accounting. In some cases, it’s best to hire an accountant before your launch. Another option is buying your own cutting-edge, easy-to-use accounting software.
If you don’t want the expense of paying an accountant to do the books for you, the fact that you’re running a sole proprietorship will be to your advantage, as you’ll find it easy to do your own books via an affordable software program, such as Peachtree, Xero or QuickBooks.
You should have the program in place as soon as you start making money. It’s probably not necessary to buy it before hand, as a typical program of this type will be intuitive and user-friendly. In other words, it will have a short learning curve, so you won’t need to spend ages learning how to use it before you put it to work for your new business.
As a sole proprietor, you’ll need to file Form 1040 at tax time and affix Schedule C. A good accounting software program will help you to track all of the right metrics, including expenses and sales, even in the earliest stages of operating your business. It will give you the power to stay organized daily and to make smart decisions as a business person.
Since you’ll know outgoing expense amounts and incoming earnings, you’ll be able to do what’s best for your business, day in and day out, without wondering what’s affordable for your new company.
As well, we recommend choosing a great tax return software program, such as Intuit. This is just one respected tax program, but it’s a solid pick. It includes all of the right features for sole proprietors.
If you do decide to hire an accountant, you’ll be able to put your accounting tasks in his or her hands and focus on other important aspects of running your business. As well, you may find that you’re able to access helpful advice whenever you need it.
What Will An Accountant Offer?
A good accountant will keep your books according to government rules and regulations, as well as accounting “best practices”. As well, an accountant will likely know the ins and outs of running small businesses, from a financial standpoint, and he or she will be able to assist you with making good decisions, whether you need to get a loan, set up an estate or take care of anything else in that vein.
If your business is very simple. an accountant’s advice may not be that important. It really depends on how simple or complex your operation will be.
The best advice is to focus on growing a loyal customer base for your new business, before you hire an accountant. Start making money and then go from there.