5 Reasons Why Start-Ups Need an Accountant

1/20/2015 - By Lisa Fairbanks

Starting your own business is risky and intimidating, but you do not need to do it alone. Outsourcing professional services for your company can provide flexibility and peace of mind. Believe it or not, accountants do more than the usual tax preparation and financial statements. Accounting is the language and basic tool of business, giving us deep insight to most industries. Here are some reasons why busy entrepreneurs should have an accountant on their team:

Saving Time

As an entrepreneur, time is of the essence and elements such as taxes and various fiscal measures are probably the last thing on your mind. We can help you construct the best federal, state and local structure for your tax filings. Also, if you're having problems keeping up with human resources, payroll or IT services, pass those chores along. Outsourcing your weaknesses will give you time to concentrate on what you do best.

Saving Money

Making smart financial decisions can be tough when you are spread thin across your organization. Proper tax planning can help you reduce your company's annual tax bill and capitalize on tax benefits. Outsourcing business functions can help reduce your operational and labor costs, while taking a couple items off of your plate. Also, a little extra help with maximizing efficiencies in areas such as cash flow, inventory control, customer invoice terms and other fiscal measures can drastically change your bottom line.

Planning

For those with the big picture mindset, having an accountant should be a priority. This is because there are many working parts that you may overlook in the process. As business advisors, we can assist you in many ways. We can help you properly plan for growth, changing business conditions, retirement, succession and exit strategies.

Dealing with the IRS

The IRS has been dealing with budget cuts that impact their service and enforcements. We can help you navigate the complicated IRS codes and answer your questions without the lengthy wait. Tax laws are continually changing and we can help you maximize various tax benefits that you may overlook.

Utilizing Tax Credits

Tax credits are your best friend, especially if you are spending money on developing new technologies, products or services. More than $5 billion in federal Research & Development Tax Credits are given out annually to small and mid-sized companies. These credits can reduce the amount of federal and state tax liabilities that your company may hold and it can help fund various operations.

You have the drive, passion and maybe even the proper resources. Let's combine them efficiently and make your investment flourish.

Questions? Contact Lisa Fairbanks, CPA
Lisa is a senior manager in the Tax and Accounting Services Department at Saltmarsh. With over 20 years of experience, Lisa is responsible for helping clients save thousands of tax dollars with the Research & Development Tax Credit, tax compliance, technical review, research and planning.