5 Signs Your Hudson Valley Business Needs an Accountant
Hudson Valley Accounting
You’re a busy small business owner in the Hudson Valley. On any given day, you have at least a dozen plates spinning at once. You book yourself solid, and you just might be one of the many business owners who haven’t learned to delegate.
And so here you are, the master juggler – you’re the marketing department, the sales, the customer service, and maybe even the janitor – all wrapped in one slightly-neurotic-but-well-meaning business owner.
The picture I’m painting may not describe you exactly, though I’m willing to bet you have your hands full. And certain tasks were never meant to command so much of our time and attention.
Take bookkeeping and accounting for instance. If you’re still attempting to perform the accounting for your small business, then unless you are a trained professional, things could get messy pretty quick.
In fact, no matter what stage your business is in – whether you’re just starting-up or you’re experiencing some serious growth – you could benefit immensely by working with a professional accountant. Here’s how and why:
#1 – You’re confused about how to structure your business
Should you form an LLC, or an S-Corp? A Sole-Proprietorship or a Corporation? These are just a few of the many distinct business formations, and each is taxed in their own unique way. Sometimes the subtle nuances among these choices are not so subtle at all. For instance, did you know that you don’t have to pay Self-Employment Tax through an S-Corp?
Someone who brings years’ of experience in Hudson Valley accounting has the expertise to get you started off on the right foot. He or she will help you to decide how to incorporate as a small business, and get all of your papers in order. These early stages of incorporating your business really set the tone for the years to come. Ace the early stages and you’ll be much better prepared for future growth.
#2 – You don’t know exactly how much tax your business has to pay
A ballpark figure doesn’t cut it. When businesses fail, they often fail for two reasons: poor financial organization and lack of cash flow. Many small business owners just guesstimate they’ll be taxed at 10% or 35% (or who even knows where in-between) and so they set aside some arbitrary number, cross their fingers, close their eyes, and hope for the best.
The reality is, exactly what you need to pay in taxes will depend on several factors, factors that often change at the whim and fancy of the IRS. If you guess too low, you’re toast come tax time. If you guess too high, you effectively lock-up the cash that you should be investing back into your business.
An expert in Hudson Valley accounting will sit down with you and help you to understand exactly how much you need to set aside for taxes. It’s crucial for the success of your business to get this number right. Anything less does a huge disservice to your small business.
#3 – Two Syllables: Au-dit
The dreaded tax audit. The “A-word” strikes fear into small business owners across the nation. Even the most organized and QuickBooks savvy of businessmen and women find themselves completely unprepared and bewildered when the IRS comes knocking.
If you feel that you might be subject to a tax audit, and this makes you the least bit uneasy, then you’re not alone. An audit by the IRS can totally consume a business owner’s time and energy for days and even weeks on end. And when the dust settles, the small business owner is often shackled with a new debt to pay and not a clue how or why.
One who is skilled at New York accounting, and more specifically Hudson Valley accounting, will help you avoid the red flags that the IRS looks for. He or she will keep you in-line with your state’s regulations and protocol. But most importantly, if and when your business comes face-to-face with a tax audit, your accountant will help guide you through the process. The peace of mind this brings is reason enough to start building a relationship with an accountant today.
#4 – Your Business is Growing!
Finally, the sunshine and roses, right? Well, not so fast. Growth can be a wonderful thing, but only if you’re prepared for it. In fact, I’ve heard many cases where businesses have actually gone under because of unexpected and sudden growth.
If your business is growing, even at a healthy rate, then you know that things aren’t so straightforward. For instance, the seemingly simple act of hiring a new employee is actually a whole process rife with eligibility verifications and checklists and, you guessed it, the ever-prevalent tax forms. Also, there are some common pitfalls that you’ll want to steer clear of.
Seeking the counsel of a professional Hudson Valley accountant is an absolute must if your business is in any stage of growth. Your accountant should be able to identify money saving opportunities in this delicate stage, as well as help you to keep organized and focused on what really matters.
#5 – You’re Concerned about the Soundness of Your Business Decisions
This is perhaps the most important of them all. Making sound business decisions is the difference between just being able to keep the lights on, and having a positive community impact while experiencing financial freedom. Which do you choose?
The point is this: your strategic decisions matter. And strategic decisions simply cannot be made without an accurate financial forecast. If you have the slightest hesitation when it comes to making short and long-term strategies, then perhaps it’s time that you see an accountant.
A professional accountant in the Hudson Valley will build the reports that matter for your business. The right accountant will then help you to understand how these reports work in symbiosis with one another, and how they play into the overall operation of your business.
So there you have it – if your business falls into any of these categories, then you should seek out an accountant today. For many small business owners, here in the Hudson Valley and across the country, the decision to hire an accountant was one of the wisest business decisions yet.
The peace-of-mind that you will gain is priceless. You’ll be able to sleep soundly again, knowing full-well that your business financials are being managed by a professional, and that each strategic move you make is founded on actual reports and forecasts.
So I’d love to hear from you – let me know in the comments below where your business lands on the spectrum, and if you’re experiencing any of the signs mentioned above.