Already Launched Your Business? 3 Ways A CPA Can Help Now
Many entrepreneurs start their own small business informally, often doing all the work themselves or relying on friends and family to fill in any gaps. But once you get your enterprise off its feet, is it too late to seek out professional assistance in key areas? Not at all. In fact, once you're comfortable in your operation, you can take the time to consult with an accountant. Here's why.
1. You Know Your Business
When entrepreneurs consult certified public accountants (CPAs) before starting their business, they may be guessing at a lot of elements. Even a well-researched owner may be forecasting things like budgets, income, expenses, and potential obstacles.
Once you've been in business for a bit, though, you know what your obstacles and successes really are. As such, business consultations have more direction and can be more effective. For example, you may have noticed a pattern that a few of your customers tend to pay late. Armed with this knowledge, you and the accountant can brainstorm strategies to increase on-time payments and manage cash flow.
2. You've Learned Some Accounting
Most small business owners don't have a lot of experience in accounting. They often keep their books in informal ways, such as a binder of expenditures and receipts. This process is fine when your business is small. But after a year or so, your company may likely start to see growth and new challenges. As such, this is the perfect time to take that introductory knowledge of accounting you've learned and translate it into a more formal bookkeeping system based on the company's actual history. You know about the basic ideas, like financial statements. But now, your accountant can help you build on that to learn about managing cash flow or how to use charts of accounts for more accuracy.
3. Tax Season Has Arrived
After the first year in business, it's time to do your business taxes. CPAs specialize in helping business owners plan for and minimize taxes. But this can be a challenge before you even know how long it might be until your company makes a profit.
After working in your business for quite some time, you might have an idea of which tax issues you need to plan for. For instance, if you don't turn a profit, you don't need to minimize current taxation. Instead, you need to learn how you will deploy losses to minimize future taxes.
No matter how long or how short your small business has been operating, it's always a good time to meet with a certified public accountant and learn how to improve it. Get started today by making an appointment. Contact a company, such as John M Vlasac & Company, for more information.