Hardware Reference
In-Depth Information
The accrual method shows your real-time financial health, and most accounting software
packages simplify the process of accrual accounting. Moving from the cash system to ac-
crual can be as easy as checking a box in your accounting software, which will do the rest
for you. However, if you run a simple, low-revenue business, don't feel pressured to adopt
the accrual system. I started my business on a cash basis, and it has proven to be the right
decision for me.
Keep Your Options Open; You're in Control
I started my business with an accountant recommended by my lawyer. I quickly realized
that he wasn't the right accountant for me. He belittled my business and told me I was
doing things wrong.
It was a difficult thing to hear especially when I was burdened with the curses of a start-up
company.
I soon replaced him with another accountant who was on the same page as I was: one who
understood the value of what I was bringing to the market, my goals in the business, my
growth plan, and my willingness to collaborate.
Remember that you can pick your team of professionals you surround yourself with, and
you should feel safe and secure with the decisions you make. Don't be afraid to make
changes along the way, especially with regard to accounting. It's your money and you need
to know that it's being handled right.
Hiring an Accounting Pro
Unless you are a numbers whiz or have a degree in accounting, you will need to employ
the services of a professional to set up your accounting software. To get a grasp on your
small-business accounting and financials, should you hire a bookkeeper or an accountant?
It's typical for a small business owner to interview and hire a part-time bookkeeper to assist
in starting the company records and even maintaining the topics and bank accounts on a
weekly (or as-needed) basis. Bookkeeping can be a mundane task that can tie you up from
the business of growing your business.
Hiring a certified public accountant (CPA) makes good sense for growing companies, busi-
nesses with more complex business structures (such as limited liability companies), and
when you add employees to your company.
Initially, you may start your business part-time or at home to keep expenses low. The cost
of an accountant on a monthly basis can be too much for a one-person business. Either pre-
pare the topics yourself or have a bookkeeper involved in the process. Use the accountant
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