Some business owners would try to file their business taxes by themselves but the majority enlist the help of an expert accountant. In fact, most businesses also turn to their accountant for help with new business formation Athens GA. Getting an accountant involved in business formation gets things started. It helps business owners determine how accounting functions will be set up, how the legal structure of the business will impact business taxes, as well as how to handle payroll, bank loans, invoicing, and more. Here’s how an accountant can help you with your business formation:
Choosing Your Business Structure
As a business owner, you must keep in mind that the kind of business you pick has legal, administrative, and financial implications. This is the reason you must start only on the right foot. In this stage of business formation, an accountant is a must. Your choice of business structure determines the type of taxes your company is subject to, the types of compliance requirements you must satisfy, and your personal liability. Also, it impacts your ability to get funding and credit. Your options in terms of business forms include sole proprietorship, corporation, partnership, S corporations (S Corps), and limited liability corporations (LLC).
Setting Up an Accounting System
Your business formation also involves setting up an accounting system. The system covers all the processes associated with your business’ finances including software, invoicing, payment terms, expenses, bank loans, credit cards, and more. You need to keep tabs on your finances while you focus on wooing new clients, managing employees, and ensuring compliance with industry laws and regulations. By hiring an accountant to handle certain tasks, you can focus on growing your business instead of getting buried in numbers. You need to work with your accountant to make decisions on significant issues like expense limitations, cost-cutting measures, terms of receivables, and cash flow management concerns. An experienced accountant can recommend smart tax planning strategies, saving you money.