for your year-end tax planning. For years I have personally used my accountant at tax time,
and we conference throughout the year to make sure we are moving in the right direction.
The peace of mind of having an accountant in the background is well worth it.
When you do plan to hire an accountant or bookkeeper, remember to find one you can
trust and build a solid relationship with because you need his or her advice and guidance in
steering your business now and in the future.
At the end of each day, your account and financial snapshot should be complete and correct.
Keep a clean and balanced business checking account. Know your financial limits. Keep-
ing your topics and accounting right will translate across your entire business model. It also
keeps you legal and out of trouble at tax time.
Federal & State Taxes
Death and taxes. Two things we cannot avoid.
Here we go with some serious topics, and it's best to refer to your CPA on these matters
for the final verdict. However, there are some general guidelines that you're going to face
as you progress down the business ownership road. When starting your business, you will
decide on what form of entity it will be. Sole proprietorship? LLC? Corporation?
Certified Public Accountants Are Your Best Friends
As I've mentioned, the best reason to hire or retain a CpA is for peace of mind. However,
there are some real functions that a CpA can perform that you may not be able to. The
duties of a CpA will vary depending on your business's financial health and tax needs,
but most businesses can use the help of CpAs. For the most part, CpAs are responsible
for ensuring that your company stays on budget and makes as much money as possible
throughout the year. CpAs are also responsible for filing taxes for a company and advis-
ing owners about potential investment opportunities or financial shortcomings. most CpAs
must attend classes or seminars related to tax law so they can stay as up to date on that
information as possible. This could happen once a year or once a month, but I would be
willing to bet that it's more often than you or I read up on tax law.
CpAs will most likely work from their office, offsite from your business. If you get to the
point where you need to hire a full-time CpA, you're on a fast track to success! most large-
scale corporations need in-house accountants to keep track of their finances, but small busi-
nesses typically outsource the needed work to local entities.