How To Start My Own Accounting Business From Home – As a business owner, you do everything. But when it comes to your finances, it can be a good idea to consult with a financial expert to help you – especially if you are just starting out. An accountant can help you track and analyze your finances and keep your records up-to-date and accurate. But it all starts with knowing what questions to ask the accountant.
When choosing an accountant to work with, look for someone who specializes in small businesses. And you need to find an accountant who knows your field. Caron Beesley, a contributor to Small Business Administration, says:
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“Small businesses have unique and sometimes difficult business needs and resources to manage them. An accountant who understands this change and has small business clients is likely to do work better for your needs in the long run.”
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Whether you’ve been working with a professional for years or this is your first appointment, make sure you know what questions to ask your accountant.
You need to track business records to collect taxes, evaluate profits, and secure finances. Not to mention that you should always have documents on hand during an inspection. An accountant can tell you what information you need for business.
To simplify the storage process, you will want to have both paper and photocopy. And keep it in a safe place (such as a locked mailbox).
Remember that you need to save all types of data for one time. The IRS has set deadlines for certain documents, while the Fair Labor Standards Act (FLSA) sets deadlines for other documents. Check with your accountant how long you should keep each type of document.
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An accountant can write and file your business taxes for you. This includes filling out all the pesky paperwork and getting your tax debt to the right organizations.
To make tax season a smooth one for you and your accountant, ask your accountant what information you need to gather first. And ask them how you can improve your records to make your tax return easier (like using accounting software). The more information you have, the less time it will take your accountant to prepare the tax information.
Depending on your business and expenses, you may be able to deduct certain business expenses on your tax return. Here are some tax deductions you may qualify for:
Care should be taken when claiming tax deductions for small businesses. Each type of deduction has specific rules that you must follow.
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Ask your accountant what business tax deductions you are entitled to. Your accountant can help you decide what to use and how to use them.
As a business owner, you may be responsible for paying estimated taxes. Estimated tax is the method that people use to pay taxes on income that is not tax deductible. In fact, you will have to pay estimated taxes if the taxes are not deducted from your income.
You may have to pay estimated taxes if you receive income that is not tax deductible, such as:
Talk to your accountant about estimated taxes and whether you should pay them every month. Your accountant can prepare and send you a tax estimate.
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As a business owner, one of your main goals is to be healthy (and good) financially. To ensure that your income does not enter negative territory, ask your accountant how you can better manage your income.
Your accountant can help you understand your cash flow, identify and analyze problems, and create a plan to improve it. In addition, an accountant can help you arrive at a sufficient cash flow for future planning and management.
The break-even point occurs when your total income equals your total expenses. When you break even, you finally make enough to cover your operating costs.
Your keyword is important to the price of your product and/or service. It can help you set budgets, manage costs and make cost-effective decisions.
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Your accountant can use your financial information to calculate your business’s competitive position. Knowing your bottom line can help you determine whether your company is profitable, losing money, or just broke.
The goal of every business is to grow in some shape or form. You may want to open a second location. Or maybe you want to expand your offer. When you talk to your accountant, ask them how they can help your business grow.
Accountants are financial and tax professionals. Therefore, they know which time is best to promote growth and which you should avoid. Your accountant can track your financial progress and see what’s holding your business back (like overspending on XYZ). And they can help you plan your income so you can better prepare for future expenses and opportunities.
Your accountant is an expert in all tax and financial matters. And after you get to know each other, your accountant will be an expert in your business. Why you should ask your accountant questions,
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Sure, your accountant may not have all the answers when it comes to your small business. However, they can help point you in the right direction and give you good advice.
Have your accountant regularly audit your business. This way they can see where you can improve and what changes you can make to help your business.
Thinking of starting a business? Have you started recently? If you want to start your company off on the right foot, consult an accountant and ask these four questions.
Choosing a business model is one of the first steps you take when starting a business. And each type of business model has its advantages and disadvantages. Fortunately, an accountant can point you in the right direction.
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Each model has its own rules when it comes to taxes and liability. An accountant can discuss the legal structure in depth to help you decide which is best for your business. Your accountant can also help you complete the correct documentation for the legal structure you choose.
The main task of becoming an employer is to classify your employees. Is your new employee an employee or a freelancer? Incorrect classification of your employees can lead to tax problems and penalties. Fortunately, by asking your accountant for help, you can avoid the wrong employees.
There is a big difference between W-2 employees and freelancers. You and the employee are responsible for withholding and filing the tax return. But with a freelancer, you don’t limit or tax them.
Your accountant can help you explore the gray area between employee and freelancer divisions to make sure you don’t make mistakes.
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While this is a question you can ask your accountant at any time along your business journey, it is one you should ask yourself when you start a business.
To develop your business, you will need more money for big projects. Your accountant can help you choose the best small business financing options.
Your accountant can tell you the difference between each of your options, list the pros and cons of each, and help you get financing. And your accountant can refer you to some lenders they know.
Your first tax season as a business owner can be stressful. And as a new business owner, you may not know exactly what your tax liabilities are. To make sure you understand your tax liabilities, ask your accountant what they are.
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Talk to your accountant to find out what taxes apply to you and your business. And discuss the process of filing and paying taxes (eg when they must be paid, what form to use, etc.).
Return to this question from time to time to ensure that your business meets the latest laws and tax regulations.
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This article was co-authored by Ara Oghoorian, CPA. Ara Oghoorian is a Certified Financial Accountant (CFA), Certified Financial Planner (CFP), Certified Public Accountant (CPA) and founder of ACap Advisors & Accountants, a boutique wealth management and full-service accounting firm based in Los Angeles, California. With more than 26 years of experience in the financial industry, Ara founded ACap Asset Management in 2009. He previously worked with the Federal Reserve Bank of San Francisco, the US Department of the Treasury and the Ministry of Finance and Economy of the Republic of Armenia. Ara holds a bachelor’s degree in accounting and finance from San Francisco State University, is a bank analyst certified by the Board of Governors of the Federal Reserve System, holds the allowed.