How Your Accountant Can Help Your Business
Most people use the services of an accountant to file their income tax returns, but businesses also need assistance throughout the year. For example, an accountant provides essential assistance during the start-up phase. They can also help you with bookkeeping, filing sales and payroll taxes, and representing your company before local or federal tax authorities. Additionally, it’s good to have an accountant to call whenever you have questions or concerns regarding your company’s finances.
Every business must keep accurate books throughout the year to properly track revenues and expenses. There’s more involved than merely entering receipts into a program. All expenditures and acquisitions must be properly classified to ensure that your monthly and annual reports are correct. Bookkeeping isn’t just a chore that was invented to keep your accountant busy, either. When your books are correct and up to date, it’s easy to keep track of your spending, analyze your financial situation, and make better decisions in the future.
With the most recent changes to the tax code, tax planning is even more important than it was before. Your accountant can help you by analyzing your financial decisions throughout the year. Many business decisions have tax implications, whether you’re renting or buying equipment, acquiring a business or selling a portion of your company, or hiring or firing employees.
You don’t have to ask your accountant about everyday expenditures, but if a decision involves the outlay of massive funds (buying equipment) or the commitment of future spending (hiring a new employee), your accountant should be there to help you estimate the tax implications of that decision. That allows you to understand the true costs of your decision.
You must invest in your company to keep up with your competitors, whether that’s purchasing new equipment, training their employees, or spending money on advertising. You may also choose to expand your holdings by adding a new store or warehouse to your firm.
Your accountant can help you make sure that you’re allocating your funds correctly. While it’s possible that you have enough money in the bank to purchase new equipment right now, those funds may be needed to tide you over during the slow season. Buying equipment now could have devastating effects later if you don’t plan properly.
Selling or Buying a Business
Selling your business or buying another company is a huge step you shouldn’t undertake without independent, financial advice. Once you decide that the decision to buy or sell is the right one, you still need to work out the details by ordering a valuation of the business.
An accountant can even help you plan out what happens if one of your business partners choses to retire early or dies prematurely. Will the business buy back that partner’s share, or can their family members keep the interest in the company? It’s important to spell out the details in writing before that happens to ensure that your company is able to handle whatever happens. In some cases, it may be advisable for the business to purchase insurance on key employees, too.
Representing You before the IRS
Your accountant is ready to help you file your income tax returns every year, maximizing your deductions and minimizing your tax liability. They can also represent you if the IRS chooses to audit your return. Many audits are done on paper, but most people just don’t know how to respond to the inquiries by the tax authorities. With a skilled CPA by your side, you don’t have to worry about making mistakes. They’ll even represent you in person if you’re required to appear before the tax authorities.
Filing Sales and Payroll Taxes
In addition to income taxes, your business may also need to worry about deducing and paying sales and payroll taxes. Sales tax must be collected based on where your company operates. You may even be required to pay these taxes if you ship products to another state. It’s extremely important to pay attention to payroll taxes, too. Generally, you must pay federal and state income taxes for your employees every month. You also have to submit other payroll taxes on a quarterly basis, including Federal Unemployment Taxes. Reports may need to be filed quarterly as well as annually.
This list may seem overwhelming, but our accountants can help you with all of these issues. Whether you need help with bookkeeping, tax filing, or selling a business, our staff is ready to assist you. Give us a call today to make an appointment at our office in Ormond Beach, Florida.
Camputaro and Associates
Certified Public Accounting Firm
136 N. Orchard Street, Suite 8
Ormond Beach, FL 32174