Why I'll Always Recommend Hiring a Tax Advisor Before a Bookkeeper
Alright, so you’re officially in business!
Customers are paying you money and things are going great! There’s just one thing…you have no idea what your current tax situation is or what next year will look like when your company’s return is due.
Hiring a Tax Advisor at the start of your business will give reassurance that all pieces of the accounting puzzle will fall right into place.
Here are a few super important questions your CPA can give you answers to—especially when getting started:
- Are you selecting the right entity for your business type?
- Have you filed all the paperwork required to officially be in business?
- What will your tax situation look like quarterly, annually?
- How much should you be setting aside for taxes?
- Do you have sales tax requirements? If so, in which states and for what products or services?
Now, I’m not saying don’t hire a Bookkeeper… that’s next on the list! You'll want to consider outsourcing your accounting if you aren’t interested in doing it yourself or if you're not able to set aside the time for it. You want to be certain that the books are getting the attention they need to maintain accurate and current financial information. Neglected books can get messy quickly, so be sure to seek the help of an advisor early on.
Don't wait until you feel that something’s gone wrong to call in help.
Do it before—Prevent the disaster!
Tax laws are complex and ever-changing. Having trusted professionals to turn to for advice is an important part of running a successful, sustainable business.
So… You’re in the beginning stages of setting up your new business and your ideas are coming to fruition, but you haven’t generated any revenue yet. Here are the next steps:
- Consult with a tax professional.
- Be sure to ask those 5 questions listed above!
- Look at different accounting software.
- Decide on 2 or 3 that you like best.
- Start working with a Bookkeeper.
- Get the accounting system in place.
- Rock & roll!
If you’re having a hard time finding a Tax Advisor but know of a great Bookkeeper… reverse the above steps! Reach out to your Bookkeeper and ask who they recommend. Trust me, they’ll have some great referrals for you!
It’s important to understand that no matter where you are in business, you can always take a step back and get things on track, if you need to.
A couple examples of when stepping back is a good idea include cleaning up data gone haywire or making things right with the IRS. Do keep in mind, however, the importance of having experts on your side to make all that magic happen!
Don’t just take my word for it, Intuit, says, “Eighty-nine percent of small businesses say they are more successful because of working with an Accountant.”
How has working with an Accountant helped your business? Leave a comment below to tell us your success story!
Not yet working with someone, but ready to start? Contact me here and let’s get started!