So, what is this magical step? It is to find a good accountant. Not exactly what you were expecting, eh? Well, it is true. A good accountant can save you a ton of money. A decent accountant can save you a bit of money. Not having any accountant can end up costing you a bundle.
So, what is a “good” accountant? To give you an answer, we must first discuss the role you need the accountant to take. Any accountant can prepare a tax return. That is not what we are talking about in this article. There are really two types of accountants – reactive and proactive. Proactive accountants are what you are looking for to help you.
A proactive accountant is one who helps you ahead of time. This person sits down with you at the beginning of each year. They discuss your business and personal life and how the year is going to shape up. The accountant will then suggest steps you can take to minimize your taxes and grow your money. Just as importantly, they will also let you know if any of your planned steps don’t make sense from a tax perspective and will offer alternatives. This one meeting will save you tens of thousands of dollars over the years. In fact, you would be wise to have a meeting every quarter.
Whether you like it or not, taxes are going to be a big issue for your business. A proactive accountant should be a vital member of your team. If you are going to make any big moves, you need to give him or her a call. Your accountant can also help you arrange your business finances in a manner that is going to help your cash flow so you can survive lean times.
So, when should you start looking for such an accountant? Yesterday! The first step in starting a business will necessarily involve how it is classified for tax purposes. This is a big decision and your accountant can provide you with the best solution for your particular situation. Ah, but can you afford to kick out money for an accountant early on? Yes. You will save a bunch of money by doing so and can deduct their fees.
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