The early days of a startup are exhilarating and exhausting. The thrill of finally living your dream is intensely exciting, but the demands on your time will be immense, especially as you start to scale operations for long-term growth. Most entrepreneurs choose to go at it alone in these first vital days, believing that support staff is unnecessary until revenue can cover the expense of additional salaries. However, this can be a critical mistake.
In order to create a solid foundation for ongoing success, hiring an accountant is crucial. But not just any accountant – an accountant who knows the ins and outs of what it takes to operate a startup. Here’s why an experienced CPA can keep you on the right track.
You Will Be Very Busy
First-time entrepreneurs often underestimate the demands that come with a new business, especially before settling into a routine. Processing orders, handling fulfillment, answering inquiries, and more can take up countless hours each week, leaving little time left for the more mundane parts of operating a business, like tracking income and expenses. An accountant can provide the peace of mind you need, handling the behind the scenes work while you focus on moving forward.
Taxes Can Be a Challenge
Filing business taxes is often new territory for business owners, even for those with experience in personal taxes. The intricacies of a Schedule C, Form 1120 or 1120S, or Form 1065 can be exceedingly complex with plenty of room for error. If you want to make sure your returns are mistake-free while maximizing all possible deductions and savings, an accountant is an invaluable resource.
Investors Like Accountants
If you’re considering seeking outside funding for your business, whether from a business partner, an angel investor, or a private equity group, an accountant can give you a big leg up. Most investors see the presence of an accountant as a plus, indicating that you understand the value in properly maintained records and are capable of generating complete, accurate financial statements. Accountants can also help create reliable financial projections, helping investors to see a realistic picture of the future of your company.
Growth Is Easier
Can you afford to hire new staff members? Is there room in the budget for new equipment or a bigger office? Will an investment in higher performing software break your bottom line? Instead of guessing on the answer an accountant can help you understand exactly how your business is doing financially, including when it’s okay to take risks versus when you need to hold assets in reserve. Most entrepreneurs tend to go with their guts, but an accountant can ensure your instincts are on the right track.
If your startup needs a professional accountant to support the early days of your business, Klein Hall CPAs is here to help. As a full-service CPA firm with extensive experience in working with startups, our experts are happy to help you start your new business on the right foot. With assistance in everything from budgeting and financial projections to taxes, there’s nothing we can’t do to help your company succeed. Contact Klein Hall CPAs to learn more!