While bootstrapping or starting a small business on a limited budget, people usually spend some time trying to figure out where they can cuts business costs and do more on their own to stretch the funds they have available.

One area you might consider doing it yourself rather than hiring it out is accounting. As long as you have an accounting background and a good understanding of business finances, this is a good place to cut some costs. However, if you lack experience in handling the books of business and hope to learn it in time, you should think twice.

Incorrectly managing your accounting system can not only hurt your business now but also in the long-run. Accounting Firm in NYC and Accounting consultation can help small businesses in many ways. This article explains the things CPA firms and accountants do for small business owners. You should review the list carefully if you are still unsure why hired professionals may be a good resource to add to your team.

The Start-Up Process

When you start a new business, there are several measures you need to take and systems you need to set up to create a strong foundation for a successful business. A CPA can help by:

• Finding the best business structure (sole proprietorship, partnership, LLC, or corporation) for your situation.
• Helping with financial assessment in your business plan.
• Providing advice on the best accounting software for you.
• Offering advice and assistance in opening a business bank account.
• Ensuring that your accounting procedures comply with government laws and regulations.
• Offering advice on how to track routine expenses while undertaking business activities.
• Describing the importance of keeping business and personal expenses separate.

Regular Business Operations

Once your business is established, you’ll need to maintain the accounting system that your CPA helped you in setting up. Some specific activities your CPA may perform to help you on an ongoing basis include:

• Helping to ensure your independent contractors are classified as such (and not employees) by the IRS.
• Explaining your financial statements, so you know your business inside out.
• Monitoring organization payroll and payment processes.
• Offering advice on estimated tax payments to be made during the financial year.
• Closing your books and creating financial reports at the end of the financial year.
• Preparing and submitting your taxes, financial statements, and all other necessary paperwork to the IRS according to their norms.

Business Growth Stage

Once you are ready to grow your business, your CPA can be an integral resource that offers advice and assists in managing the process. A CPA also:

• Help in determining the areas for growth by lending insight on inventory management, pricing business financing, and cash flow patterns.
• Helps in preventing audits by the IRS.
• Prepare you for the audit, and guide through it, when necessary.
• Generate financial forecasts so you can make better decisions for the future.
• Help you in creating budgets that will support your business goals and objectives.

Conclusion

These are just a few ways in which a CPA firm new york can work with small businesses to guide them to success, however, they help them in more ways than what can be described. The most important thing to do when it comes to managing business finances is recognizing when there is a need to enlist the help of a professional. Accounting consultation in NYC offers the best solutions for your accounting requirements.