Starting a New Business in the Tri-Cities: How a CPA Can Help
Home » Tax Preparation » Starting a New Business in the Tri-Cities: How a CPA Can Help
Benefits of Small Business CPA Services
When you start out to launch a business, you might think of the inventory you’ll need, the location for the opening, and how to reach your potential customer base. You might even consider hiring the services of a lawyer.
But has it come to your attention that you will need the financial services of a CPA, or certified public accountant? If you are even just in the idea stage for your new business, you should make it a priority to consult with a CPA. In fact, meeting with a CPA is a must in order to address tax preparation issues, and other important financial matters related to your new business.
Among the advantages of consulting with a CPA are saving valuable time, ensuring legal compliance with the IRS, and having a financial expert to strengthen your business plan. The right CPA can make a tremendous difference when it comes to ensuring you are set up for success when it comes to the financial components of your company.
Here are six ways that a CPA can be a huge asset for your business:
6 Ways a CPA Will Benefit Your New Business in the Tri-Cities
Choosing a Business Entity
One of the most important decisions you must make at the business development stage of your new venture is what type of entity you should use. You can select from an S corporation, C corporation, LLC, sole proprietorship, or partnership. You want to be sure of your choice, as it can be challenging to reverse your decision later.
The business structure you choose will have significant implications for your tax liability. Each type of business structure is complex and requires the involvement of an experienced CPA to make sure it is done right.
You will select the appropriate entity based on how you anticipate operating your business. For example, do you require liability protection? Will you have business partners? Are you able to budget for estimated taxes?
Your CPA will be of great service to you as she helps you figure out how to structure your business.
Your CPA can also help you figure out how your business can be eligible for more complicated deductions. Your CPA is the expert for all matters that are tax related.
Additionally, your CPA will inform you of all of your tax responsibilities. They can be subtle and easy for a business owner who doesn’t have financial prowess to miss. A CPA can answer lots of practical questions related to tax preparation. For example, will you be doing business in other states, and will this involve more taxes? Should you charge sales tax? What’s more, if you hire employees, you will need to set up payroll and collect payroll tax. This is where a CPA’s services are indispensable.
Ensuring Your Business is Compliant with the IRS
No matter what business you are starting and what industry you’re in, it is imperative that your business is in compliance with tax laws and regulations. Tax preparation for your business is not something you want to overlook or handle lightly.
A competent CPA will be informed on the tax law changes and help you navigate the complex tax system, while making sure you pay the government what you owe, no more and no less. If you don’t hire the services of a CPA, you run the risk of experiencing unrealized tax returns and missed tax payments. That could bring with it substantial penalties, as well as the possibility of the IRS filing liens on personal and company assets.
Establishing Your Bookkeeping Procedures
Look to your CPA to set up your bookkeeping system, which is designed to keep track of business transactions, such as sales and expenses. Your CPA can make it so your businesses bookkeeping system is simple to use and highly organized.
Your CPA will make sure your business bank account is separate from your personal bank account, as the mixing of the two could lead to major financial problems.
Assisting in Creating or Reviewing a Business Plan
A CPA with business consulting expertise is qualified to assist with evaluating the financial components of your new business. Your business plan will benefit from the perspective of a CPA, who can put a number-focused emphasis on growth. The CPA will factor in startup costs, operating costs, and financial risks as outlined in your business plan.
By soliciting the involvement of your CPA, your business plan will be more useful and practical, while assisting your business in acquiring the financing you will probably need to launch your new business successfully.
Determining which Financial Processes are Ideal for Your Business
As a business owner, you will be deluged with various aspects of your new company that you will need to sort through. There will be many decisions to make. One of the important facets of a new business to figure out is how payroll will work. You will need to decide which financial software you will use. What is the best way to manage your books?
A CPA will be invaluable as he helps you navigate through the labyrinth of financial operations of your new business. Your CPA will also help you with more basic tasks such as setting up your bank accounts, giving advice for tracking your daily expenses, and providing guidance about correct budgeting procedures.
An experienced CPA is a huge asset for your business as you identify potential areas of company growth, handle an audit by the IRS, and create a business plan. In fact, hiring the right CPA will be one of the most important decisions you will make during the creation phase of your new business venture.
Look to PorterKinney for Exceptional Quality Accounting Services
The firm dates back to 2006, when Chris Porter began operating a home-based tax firm and prepared his first tax returns on his kitchen counter. In June 2014, Walter Kinney left a large local firm to partner with Chris, and the company was named PorterKinney, PC.
In addition to tax preparation, we also offer bookkeeping and payroll services, as well as a variety of business consulting services. Our business tax and accounting experience covers a wide range of market segments, from farmers’ fields to physicians’ offices.
If you are interested in using any of our accounting or business consulting services, we invite you to reach out to us on our website. You can also call us at our two offices in the Tri-Cities:
Disclaimer: While PorterKinney PC has made every attempt to ensure the accuracy of this document, it is not responsible for any errors or omissions, or for the results obtained from the use of the information in this presentation. This document been prepared for information purposes and general guidance only and does not constitute legal, accounting or other professional advice. Circular 230 Notice: The information included in this presentation is not intended or written to be used, and it cannot be used, by any taxpayer for the purpose of (1) avoiding tax-related penalties or (2) promoting, marketing, or recommending to another party any tax related matters.
