As a small business owner, you are in charge of almost every aspect of your business. However, areas like accounting are better left to the experts. But since you may not have the budget for an in-house team, you may want to find help in top accounting outsourcing firms. This allows you to help professional advice without the need to break the bank.
Outsourcing your accounting needs to a firm is the best way to save money while still enjoying the full services that an in-house accounting can offer. The only difference is that these firms have all the right software, teams, and processes in place to help you reach greater heights. Besides, since they will be working as an extension of your business, you will have access to the accountants wherever and whenever. It is the best way to get the job done without placing a strain on your already tight budget.
Working with top accounting outsourcing firms means getting the best accounting services in the market, and you know what that means for a small business. Small businesses have dynamic yet complex accounting needs, and fewer resources to take care of them. An experienced accountant will help with monitoring, analyzing, and keeping accounting records secure. They will also offer business-specific recommendations and advice to help you reach greater heights.
Here is a list of questions that you should be asking your accountant to ensure you get the most value out of your working relationship:
How should I structure my business?
If you are just getting started with your business, and have no idea the best way to structure it, then your accountant can help you make an informed decision. He or she will take you through the different types of business structures – sole proprietorship, partnership, corporation, or LLC – and their unique set of rules. He or she will also inform you about the tax liability and legal requirements for each business structure and assist you in filling out the right documents for the legal structure.
What key areas should I consult about regularly?
An expert will understand your business' dynamics early on. So, they should be in a position to highlight the critical factors that can affect your business. It's a good idea for your accountant to have detailed knowledge in areas like financial modeling, corporate taxing, GAAP, and HR planning. While working with them, it's crucial that they can help you make certain decisions like renting or purchasing a particular property or hiring a part-time or fulltime contractor and so on.
What's the plan to manage cash flow?
Your accountant's work is to help manage your current cash flow and project the future ones. He or she should help devise a plan that will help keep you in business even during tough times. All your payables and receivables pass through the system that's created by an accountant, and nothing should be missed or overlooked.
How should I plan for tax season?
Taxes are one of the main reasons why many business people seek accounting services. And although your accountant will take care of filing and remitting your business taxes, there are a few things you can do to put your records in order and make the entire process easier and faster – and your accountant can inform you about these things. Having your documents in order will not only save you time but money as well, especially if your accountant bills you per hour.
How should I finance my business?
There are several ways to finance your business – you could dip into your pocket, or ask your friends and family for help. You can also take a loan or give up some shares. So basically, there is a right or wrong way to finance your new business. However, a qualified accountant can inform you of the advantages and disadvantages of each option. Depending on their level of expertise and their willingness to help out, some accountants may help you sell shares, crowdfund, and/or even find angel investors.
Is my business a viable one?
This is a critical question, especially if you are thinking of quitting your full-time job and delving deeper into the business. A sit down with your accountant can help you create financial projections that project when and where revenue will come from. He or she will also help you calculate things like start-up and operational costs, loan repayment cost, and the amount you may want to withdraw from the business over time.
How should I organize my books?
The rule of thumb is to keep personal things personal – including finances. Many entrepreneurs do not have a clear line when it comes to personal and business finances, and this only ends up hurting them. Your accountant will most certainly recommend creating a separate bank account for your business transactions and getting a different credit card for business needs whenever possible.
Conclusion
Working with a qualified and experienced accountant can save your business from many unexpected situations and also help you save on tax and other operations significantly.
