What Do You Need To Set Up With An Accountant?
If you’re starting a business, setting up for accounting is a good idea. Financial problems are one of the top four most common reasons why businesses fail, along with bad planning, poor management, and marketing mishaps. Setting up with an accountant is a great way to navigate the many financial pitfalls you can run into managing a business. But what do you need to know and do to get set up? Well, let’s take a look.
1. The Basics
Setting up for accounting is going to require some basics. You’ll need software to manage your financial records. QuickBooks is a common go-to software suite, but some specialized businesses have better software out there. For businesses that sell goods, you’ll also need software to track your inventory so you can keep your store stocked. Naturally, you’ll also need the hardware to run it on: a computer. That computer will require good security to keep your records safe.
While all of this is stuff you can do yourself, hiring an accountant is a good way to make sure you get everything you need. A good accountant will already have this, or will know where they can get it, taking all the guesswork out of what the best tools are for you.
2. Creating a Financial Plan
It’s all well and good to have products and make sales, but what is your financial plan? A financial plan identifies, organizes, and prioritizes your financial goals. This allows you to outline the steps you need to take to achieve them. It also helps you manage your company growth and react to changes in the market. Life is unpredictable and a good plan allows you to adapt to circumstances, but without a plan, you might as well be floating in a raft in the middle of the ocean.
A good accountant can help you put together a financial plan for your business. They have training and experience in managing money and know the best ways to make, spend, and save money to improve your company’s growth.
3. Set Up A Tax Plan
Taxes are as inevitable as death. When you’re starting up a business, you need to remember to account for taxes and know how to plan around them. There are many ways a business can get taxes written off, but it’s not always as straightforward as just going on business lunches. You have to balance your write-offs to prevent them from costing more than you save. You also have to put together a saving plan to make sure you have money put aside to cover the taxes.
Having an accountant helps here, too, but make sure you schedule regular quarterly meetings with your accountant to go over your records. If you only talk to your accountant once a year when you give him your tax files, you leave him in a rush to catch up. That’s a situation likely to lead to mistakes. Meeting regularly keeps your accountant up to date so that when the time comes to file, he has most of the work done already.
4. Keep Everyone On The Same Page
Regular meetings with your accountant are important, but they aren’t the only ones who need to know. If you have a legal team, they should be kept in the loop, as should any business partners. Possibly your managers, depending on how involved in the company they are. Good managers can give you key insight from the ground level as to how your company is doing that isn’t clear from just the financial records. Your legal team can help you make smart decisions for your business, such as when to reclassify your business (sole proprietorship, partnership, LLC, etc.). When setting up your financial plans, be sure to work out plans for when you meet with these groups so everybody can be kept on the same page.
Let Us Help
If you’re a business in Cache Valley, or are looking to start one, we can help you out! Here at Stapley Accounting, we’ve got over twenty years of experience in this business. We’ve helped many businesses get started. We know how to help you plan for and manage your company finances. We can also handle payroll management, and offer virtual assistance among our many services.
If you’re looking for an accountant to help your business, you won’t find better than Stapley Accounting! Get in touch today and schedule a free consultation about your situation. Find out how we can help you!