Starting a small business can be difficult on a limited budget. When deciding where to cut business costs, you may think that doing your own accounting instead of hiring a professional will save you money. If you do consider doing this by yourself, you should have a solid understanding of business finances and preferably an accounting background. If not, it may be best to leave this responsibility to the experts, for it can save you money in the long run.
Here are some benefits of hiring an accountant:
Starting Your Business
There are many things you must take into consideration as you set up the foundation of your company. First, an accountant can help you determine the appropriate business structure for your company. Should your California business be an LLC, an S-corp, or both? Your accountant can explain the differences to help you find the best fit for your situation. As you get started, an accountant can provide you with any advice on accounting software and assist you with opening a business bank account. They can also make sure that your accounting procedures comply with legal requirements and provide advice on how to track business expenses and keep them separate from personal expenses.
Operating Your Business
Once your company is operational, you’ll want to learn how to maintain the system and foundation that the accountant has provided for you. This may be understanding your financial statements, company payroll and payment processes, financial reports, tax payments, and compiling all necessary paperwork needed during tax season. An accountant can not only explain these processes to you, but they can also take over these responsibilities so you can focus on running your business.
Growing Your Business
One pivotal role an accounting firm can play in your business is helping to project future opportunities for the organization. An accountant can put together a break-even analysis and set aside different growth options for consideration. That way, you are armed with the knowledge to strategically decide on the direction for your business that has the most promise. Without a strong understanding of the effect of your goals, costs, and opportunities over a given period of time, it’s nearly impossible to make an educated choice for your business’s future.
Accounting Services in Orange County
At Hall & Company, we are an experienced Orange County CPA firm based in Irvine that is committed to providing quality tax and accounting services along with sound financial direction to clients throughout the Orange County and Southern California area. Our top OC accountants offer business development consulting, audit, tax preparation, IRS Audit, retirement planning, business roundtables, estate planning, QuickBooks consulting, Interim Chief Financial Officers, and a full range of traditional public accounting services.
Contact our accounting team to learn more.