Getting an Accountant for Your Small Business is a Wise Investment

Getting an Accountant for Your Small Business is a Wise Investment

It’s no secret that small businesses in Concord, NC, run on a tight budget with little extra to hire outside services. That means doing the books in-house, maintaining licenses for the business and keeping the corporation current with the state of North Carolina. It’s a lot of work that takes time that could be used in pursuit of growing the business, but you might balk at the idea of getting a Charlotte, NC business accountant because of the expense. The fact of the matter is, a business accountant is more than someone who does your books; she’s someone who helps you grow your business. Following are some of the ways a business CPA helps your business thrive.

Gets You Incorporated to Protect You and Your Income

You can’t stay a sole proprietor forever, especially as your business grows. The more you earn as a sole proprietor, the more taxes you pay. Incorporating with the help of a CPA allows you to structure your income so you pay less taxes overall. It also protects your personal property and income from lawsuits that might arise during the operation of your business.

The various types of corporate structures can make it difficult to decide which one is best for the business. The CPA will guide you in selecting the one that works best for your type of business and help with determining corporate officers, how many shares they own, their titles, and who will be the registered agent. After incorporation, the CPA keeps the corporation in good standing with the state and files taxes at the state and federal level on behalf of the corporation.

Helps With Your Payroll Needs

You’ve incorporated which means you can create a payroll even if you’re the only employee. The CPA can set up the employee designation, whether contractor or hourly employee, and make sure the appropriate taxes are reported and paid to federal and state governments. It’s one less thing you have to worry about while you run your business.

Monitors Cash Flows

Money comes in and goes out as the business operates, but you may not keep as close an eye on things as you think you are. Or maybe you prefer to let someone else keep track for you. Whatever it is you prefer, a Charlotte, NC business accountant can monitor cash as it moves through the business. She can alert you to changes in spending patterns, let you know when spending should be slowed down, and give you the green light to make a purchase. A business CPA can do this for you even if you track your cash flows as two heads are better than one when it comes to funding business operations.

Creates an Operational Budget

Every business deals with fixed costs every month. They include line items such as utilities, loans, rent or mortgage, supplies for production and office, payroll, and scavenger service. The business has to generate enough income each month to pay these bills in order to keep the doors open. When a CPA creates an operational budget, you can see where money goes ever month and have a better idea of how much cash will be left over every month.

Advises on Equipment Purchases or Leases

When a business wants to get a new piece of equipment, it has to decide whether it wants to lease or buy. Leasing is attractive because the cost of the lease can be written off as a business expense whereas only the interest on a purchase can be taken as a deduction. But leasing means you don’t get to take the depreciation deduction. However, this isn’t a black-and-white decision because a lease may make more sense for the business instead of a purchase. A business CPA can help you determine if a lease or a purchase is right for your business and tax situation.

A CPA can be more than someone who keeps your books straight. She can also be a valuable ally in the operation of your business by providing invaluable advice and guidance that helps your business grow beyond your wildest expectations.