Professional tax accountants are an invaluable asset to any startup business, from filing taxes to providing advice and insight on expanding the operation of your enterprise.
An expert tax accountant can also ensure your compliance with evolving tax laws and help identify deductions that you might otherwise miss. Here are the main reasons to hire one for your startup business:
1. They’ll Save You Time
Many new business owners mistakenly believe hiring a tax accountant as an extravagant luxury, when in reality it can actually save their startup money. Aside from making sure your business files its taxes correctly and claims all eligible deductions, having an accountant also decreases risk of audit, ensures compliance with changing laws and provides financial data that supports strategic business decisions.
Most importantly, an accountant can save you time by helping to outsource work that is not core to your company’s operations. By outsourcing tedious bookkeeping and tax filing tasks, they allow more time for revenue-generation activities within your business.
2. They’ll Save You Money
CPAs offer more than just basic tax filing services; they’ll also help you cut expenses by taking advantage of deductions and credits that could save money on taxes, as well as staying abreast of changes in laws that could provide new opportunities to save.
Given the limited finances of startups, it’s imperative for business owners to reduce costs as much as possible – but forgoing professional accounting services could end up costing thousands in fines and penalties.
Most entrepreneurs must wear many hats and don’t always have time to dedicate to overseeing their finances full-time, which makes oversights commonplace – with serious repercussions come tax time. Consulting with a CPA can save the cost of costly errors while helping your company remain in compliance and reduce tax liabilities by taking advantage of deductions and credits that might otherwise go unused.
3. They’ll Help You Avoid Mistakes
As your business expands, its support systems and processes must also change accordingly. Hiring a professional tax accountant early will allow you to catch mistakes before they’re made – and possibly prevent small oversights that cost more than what they cost your company in fees to an accountant!
Accountants can help you save money by identifying ways to reduce costs and take advantage of tax breaks and deductions. They’ll work closely with you throughout the year to make sure that your finances are organized so as to reduce tax liabilities.
Many startup owners make the mistake of forgoing professional tax advice as they perceive it to be too expensive or they believe they can handle it on their own, however this mistake could cost their business thousands in taxes. If you’re uncertain if hiring an accountant is worth investing in here are some reasons why it could be worthwhile:.
4. They’ll Give You Advice
As the owner of a business, you must pay quarterly estimated income taxes, federal employment taxes for any employees you may have and local excise and property taxes. An accountant can assist with keeping track of these details so there will be no surprises come tax season.
Accountants can help startups make sound financial decisions. They can offer guidance as to the amount their startup should make and provide projections for the first several years so that you know exactly what lies ahead.
Accountants can help your startup find the most appropriate filing status (LLC, S-Corp or C-Corp). Furthermore, they can explain equity vs debt financing to help determine which form makes more sense for its startup venture. Finally, accountants provide guidance for using cash flow efficiently while finding deductions available specifically to startups.