There Are Numerous Reasons Why Your Small Business Should Work With A Professional Accounting Firm
Whether you are planning on starting a new business or are operating an existing organization, there are numerous reasons why you should work with a professional accounting firm. While some entrepreneurs believe that they can go it alone, it is simply not a sound business decision. In fact, startup businesses that do not utilize the services of a professional accounting firm are more likely to fail within the first 18 months. Well-established businesses may not be properly utilizing their financial data without the help of a professional accounting firm.
They may even be taking unnecessary risks and missing out on money saving opportunities regarding taxes and tax planning. You should never underestimate the diverse amount of knowledge and experience that a professional accounting firm brings to the table. The following information will show you a few reasons why it makes good business sense.
A Professional Accounting Firm Will Aid You In Establishing The Best Business Entity And Help You Incorporate Your Organization Correctly
One of the initial decisions that every business owner must face is choosing the correct type of business entity for their organization. This is an incredibly important decision because it has extensive tax related consequences, which happens to be an area that most entrepreneurs are not experts at. The good news is that a professional accounting firm has the experience, knowledge, and expertise to help you establish the best situation for you and your new business.
For example, a professional accounting firm will know whether you should set the business up as a sole proprietorship, limited liability company, or an S corporation to name a few. Some small business owners launch their business activity as a sole proprietorship under their social security number because it is the least complicated, and the most affordable. This means that the business and the business owner are essentially one and the same being. However, a corporation or limited liability company (LLC) provides entrepreneurs with important advantages. They protect the business owner’s personal assets. That being stated, it is crucial that the corporation or LLC is structured properly in order to provide full and absolute protection. This is the exact reason why the help of a professional accounting firm should be utilized. Unless you have extensive knowledge in this area it is safer to leave it up to a professional. The protection of your money, properties, and other personal assets depends on it.
A Professional Accounting Firm Will Help You Keep Accurate Financial Records
It is extremely important for any business to keep accurate financial records. This is also referred to as bookkeeping. A professional accounting firm has the ability to establish, utilize, and maintain a customized system that will properly keep track of your revenue, expenses, assets, and inventory. Accountants have the expertise and experience to ensure that your business is using the most effective method of record keeping. This will save you both time and money. It will prepare you for the filing of your business income tax return comes tax time. It will also depict a true sense of your company’s financial status, and provide you with the ability to identify and react to trends that are affecting your business.
A Professional Accounting Firm Will Provide Your Business With Expert Guidance Regarding Tax Planning And Tax Return Preparation
There certainly are many areas where a professional accounting firm can help your business. However, the first thing that comes to mind for most people revolve around taxes. Business taxes are complicated and should only be handled by a professional accounting firm that has the skills, expertise, and tax related knowledge to perform the job properly. Business related taxes are based on tax planning and tax return preparation. A professional accounting firm has the ability to plan a tax strategy that will reduce the amount of money your business owes in taxes. They will also prepare the tax returns in a manner that will comply with all state and federal tax laws, which in turn will reduce the likelihood of a tax audit. If your business happens to be audited, a professional accounting firm can represent your business and look out for your best interests when dealing with the IRS.
If you need further advice or are searching for a new certified public accounting firm that puts the needs of their clients first and foremost, please contact Swartz & Reeder Advisors today by phone – (847) 241-5800, email – firstname.lastname@example.org, or visit our website at www.swartzreeder.com