If you have worked for someone else your entire life but are now going out on your own to start your own business and don't know much about finance, hiring a professional could be the key to success. There are a lot of financial concerns you need to have when starting a business and maintaining the finances.
Most people don't know anything about the taxes in their city or state, or how to do federal business taxes, which is important. Here are a few reasons why you need to hire a consultant before you start taking new business.
The payroll system can be one of the most confusing for business owners. You need to take out federal and state taxes, take out money for health insurance, and you need to pay into taxes, all at the same time. Have a professional accountant do all of the bookwork to make sure payroll is correct, and then have them deposit the funds for wages with direct deposit weekly, bi-weekly or whenever you think it's best.
Tax Savings Account
You have to save for your taxes all year long so you aren't stunned by what you owe when you go to file. The accountant can help you find the best type of savings account to put all the money into, so you can make a little money while you're saving for your taxes. They will determine an estimate of what you owe quarterly so you can put it away.
The accountant will see what you can afford to pay yourself, and may suggest that you pay yourself a check like the other staff. You can give yourself a distribution at the end of the year if there is a lot of money left over, but you don't want to overpay yourself while you're trying to get on your feet. The accountant will see where you are spending too much, where you can use more money, and when you buy, rent, or take a loan for business needs.
Using a financial professional to help you manage your finances is going to cost you money, but it's well worth the investment because you won't get hit with financial surprises or problems that could unexpectedly tank your business. Talk with a few small business bookkeepers in your area to see who is taking on more work, and who can help you get the financial aspect of your business started. Contact a company like Waggoner Frutiger & Daub CPA's to get started.Share