It should seem like a no-brainer that when beginning a new business venture you also need the expertise of an accountant and lawyer to ensure you are doing things properly. Legalese is like a foreign language and ensuring you pay your taxes and stay out of trouble should top your list of priorities.
However, aside from those obvious reasons, there are many more circumstances in which you will need the assistance of an accountant. As you become more experienced, you’ll find that your accountant and attorney will overlap a bit in their services and expertise. That being said, here are a few examples of services your accountant should provide:
*Help you decide what type of entity (such as S-Corp or LLC) and ownership structure to have when you first get started; your accountant may work with your attorney on this.
*Design and set up your accounting system so that year-end financial reporting will be easier.
*Ensure that you pay the correct types of taxes in the correct amounts.
*Ensure that you send out W2 and 1099 forms to the proper people at the proper times, and also make sure that if you send out 1099s, the IRS will agree with you that those individuals are independent contractors and not employees.
*Advise you on deductions and how to separate your personal and business expenses.
*Advise and guide you through an audit if you ever have one.
*Advise you on specific transactions, such as whether it’s better to lease or buy.
*Compile your financial records for the past period.
*Help you understand your financial statements. You should use your accountant’s expertise to help you analyze your financial statements.
*Knowing what kinds of business expenses are deductible.
It’s best to ask your accountant’s advice before you take any kind of financial action regarding your company. If you’re looking for a CPA in Hawaii to help guide you in your new or existing business ventures, visit Michael J. Yuda CPA, LLC today!