When Should A Startup Consult With An Accountant?
When Should A Startup Consult With An Accountant? The answer: as early as possible!
Look upon your accountant as a valued member of your team, one that can offer not only accounting advice, but also can help you as set and reach your goals as you grow. He can offer advice on:
- When to file your business structure
- What tax advantages each structure offers
- Additional tax benefits based on changes to the tax code
- Suggest additional deduction, changes in your status, and combining or separating business and personal expenses.
- Make introductions to key people including other professionals and funding sources.
Finding that trusted advisor, one that you will want to keep for the next 30 to 40 years, isn’t easy. You’ll want someone you can trust, and that can help you from the day you start your business to the day you sell. They need to genuinely care about you, your business and your goals and demonstrate that they are willing do anything to help you get to the next level.
There are many different ways to structure a business such as a corporation, s-corporation, partnership, sole proprietorship, and a LLC. It’s important to understand the advantages and disadvantages of each structure and the tax implications associated. Your CPA will understand each and can advise you clearly what would be best for the business you are starting.
They will also be aware of the constantly changing tax law and will be the one on top of that from year to year to make sure that you are compliant with IRS. There may also be special deductions and incentives for startups that may be specific to your state and industry. A good CPA will know this and be able to guide you so you can take advantage of these specific deductions.
In addition, a good CPA not only knows his industry and the many changes that occur each year in the tax code, but they are also well connected in your community. They can help introduce you to other trusted advisors that will also be important to your business, such as attorneys, bankers, financial advisors, insurance agents, etc.
So before deciding on how to launch your business, consult with an accountant to make sure you will maximize the many advantages available that your accountant can reveal to you.