We consider the choice of your accountant as #1 on the list of things to do in starting a new business. There are several reasons for this.
Accountants do much, much more than just closing your books and preparing your tax returns. They have seen business success stories. And they have seen horrible business mistakes. Through experience and training, they are aware of most all of the challenges you will be facing. If they cannot provide the answers you need, they will refer you to someone with the needed specialty.
One of the worst decisions you can make is to choose your accountant after your critical first decisions are made. One of the best decisions you can make is to choose an accountant you are comfortable with and involve them in your decision making from day one. They can help you make the best decisions on issues including:
- Creating your business plan
- Creating your marketing plan
- Choosing a form of business (corporation, partnership, etc.)
- Obtaining all necessary business licenses
- Obtaining all necessary tax numbers (IRS, State, etc.)
- Choosing your bookkeeping system (software, etc.)
- Tax planning
CPA's (Certified Public Accountants) are highly trained and licensed by the state. While usually more expensive than unlicensed accountants, their broad areas of experience are what you need. They can "hold your hand" through many of the most important issues that you will face. You get what you pay for.
Accountants and Bookkeepers that are not licensed by the state also perform very valuable services. By using a combination of a bookkeeping service and a CPA, you can obtain the help you need at a reduced cost.