Why Entrepreneurs Need Accountants by Their Side
Did you know that according to the U.S. Small Business Administration, approximately 50% of small businesses fail in year one, and 95% fail within the first five years. Many times a business fails due to poor management, lack of delegation, unprofitable business models, and misuse of business funds. But you don't have to be a part of the statistics above.
To set your new business up for success, one of the first things you should consider is hiring a trusted accounting firm. Why is this so important? Because accounting is the pulse of any business. Expenses, cash flow, budgeting, income and more are all required functions for any size company in any industry.
What you might not realize, is how much an accounting firm can help you with when getting started to become your own boss of your business, regardless of size.
For starters, if you're confused about what type of legal structure is best for your company, Fittante and Colenso, CPA PC can help you decide. Between the legalities of S corporation, C corporation, LLC, or sole proprietorship, it can be a daunting task to know what is best. For instance, the corporate income tax rate was reduced by 21%, but also established a 20% deduction for certain pass -through income under the 2017 Tax Cut & Jobs Act. The staff of Fittante and Colenso, CPA PC are always up-to-date and knowledgeable in the new tax law and can help you decide the legal structure that provides the most favorable tax position for your business.
Now, you may be an expert in your field, but what about all of the back office duties that are needed to ensure your business is successful? An accounting firm can also help you set up internal controls. Here is a quick example: accounts receivable and accounts payable should be handled separately, either by multiple people or on different days; and all financial recordings should be carefully reviewed.
Our staff at Fittante and Colenso, CPA PC can help handle all of that for you! And it get's better! We can help you develop your business plan, build a sound business model, and evaluate the potential revenue stream. We can also advise you through downturns, provide periodic financial checkups, and help set up key performance indicators.
So as you can see, the importance of professional, reliable accounting methods cannot be stressed enough. In order to survive and beat those stats above, all businesses must know where they stand financially. When an effective accounting system is in place, you can be rest assured that you are in good hands and can focus on the aspects of your business that you enjoy most!
If you are in need of accounting services for your new business in areas of Wisconsin or the Upper Peninsula of Michigan, or just want more information, please call us (906) 774-4051 or email at solutions@f-ccpa.com.