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Starting a Small Business? Professional Accounting Services Can Help You Succeed

Starting a Small Business? Professional Accounting Services Can Help You Succeed

Small business owners who are just starting out should seriously consider seeking assistance from professional accountants. This is the case even for business owners who have some experience accounting. No matter how comfortable you are with managing the books, hiring an accountant can save you time and money, help reduce stress, and contribute to the ongoing success of your operation. Even if you intend to oversee your business’s accounting as part of your overall management obligations, it’s inadvisable to do so without the guidance of a professional, especially when it comes to certain key areas of the bookkeeping process. Keep these following tips in mind.

A professional can help you form your business entity correctly

Before you write out your business plan, consult with a professional accounting service so you know what kind of business structure will be best for you. The most common business structures are sole proprietorship, LLC, partnership, and corporation. For example, if you are launching a very small business, your best bet would be to create an LLC (limited liability company) to protect your assets and to benefit from startup deductions as well as help you save at tax time.

A professional can help you make sure you are following tax law

Business owners who are savvy with accounting or have reliable bookkeeping software may still find themselves utterly at sea when it comes to dealing with tax law. One of the most complex dimensions of the business tax world is sales tax, especially since the codes differ from one state to the next. Another potentially overwhelming dimension is payroll tax. And this isn’t an area where you want to cut corners or risk errors because not only can it lead to fines and penalties, but it can also lead to a negative work environment and loss of rapport with employees. Payroll tax isn’t just about calculating the correct amount to withhold. It also has to do with overtime, personal and sick leave, and any wage garnishment requests—so, it can be an ongoing challenge even for the initiated. For those who are new to the world of business, a payroll for startup service can help you tackle this aspect of payroll and so much more.

A professional can help you with quarterly taxes.

Individuals launching their own business who have grown comfortable filing their family’s taxes may have unanticipated challenges in store for them if they try to file for their business. This can happen when you’re faced with quarterly taxes. If you anticipate owing £1,000 or more in income taxes, you will need to pay an estimated tax four times a year—and yes, there are deadlines for this. The bonus of paying estimated quarterly taxes is that when the federal deadline approaches, you will already have paid three-fourths of what you owe if the quarterly estimates have been calculated correctly. This is why the assistance of a professional is so crucial. Otherwise, you could have an unpleasant surprise in the springtime.

A professional can help you at filing time.

Filing your taxes properly to meet the deadlines involves amassing a lot of paperwork and records. While you certainly need to stay on top of this, having a professional handle the filing will save you time and headaches. A professional accounting service can also make sure you are claiming all the deductions available to you so you don’t overpay. An accountant will even check to make sure you aren’t missing anything or making any errors that could trigger an audit. While you certainly don’t want to overpay, it’s just as important to be sure you are reporting correctly and not claiming deductions that are not due.

Choosing a professional accounting service is an investment that will pay off increasingly over time, especially if you are able to develop an ongoing business relationship with your accountant. Consult with a professional who can assist you as your business grows, help you meet your goals, and provide you with peace of mind.

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