Looking to make your small, self-owned business grow? One of the best things you can do is to hire an accountant who can guide you through the major financial decisions involved in doing so. There are arguably quite a few involved, and each one is important and will play a vital role in the future of your business.
In this article, we’ll give you a basic overview of what to expect and the ways that a certified accountant can guide your next steps.
Moving Forward as a Small Business
Before we proceed, we’d like to give you an idea of what you can expect moving forward.
Depending on how your business is set up currently, you have several routes you can take to effectively scale up your operation. For entrepreneurs (i.e. self-employed individuals), the most common options that many people go for are a) transitioning to a sole proprietorship, and b) registering as an LLC (limited liability company).
Both options have their pros and cons. From a financial standpoint, some of the key differences between the two include:
- Sole proprietorships require minimal paperwork to set up and maintain. LLCs, on the other hand, have much more stringent requirements.
- An entrepreneur with a sole proprietorship exposes themself to business liabilities that can put their personal assets at risk. LLCs effectively minimize this risk by providing protection from commercial lawsuits, debt, and similar threats.
- Sole proprietorships are subject to fewer taxes than LLCs. The processes involved in filing taxes as a sole proprietor are also simpler. However, when an LLC grows in scale (e.g. hires more employees), the potential tax savings could surpass those of sole proprietorships.
There are other key differences as well. What’s important to know is that each one is a viable choice, but the right one for your business will depend on many different factors.
How an Accountant Can Help
As you can see, knowing which path to go on is already a complex decision. The applicable concepts and pertinent laws can be understandably confusing, especially if you’re a small business owner who has so far only been involved in their own finances.
This is where the help of a certified accountant can be immensely helpful. They’ll be able to simplify the many concepts involved such as asset protection and taxes for entrepreneurs. With their aid, you’ll be able to make better decisions as you’ll have a better grasp of the relevant subject matter.
In addition to this, an accountant can help you acquire and submit all the documents that are needed in scaling up your business. They’ll be able to facilitate the process of setting up your sole proprietorship or LLC—depending on your choice—and continue to provide their services for all future requirements.
Hiring an accountant, when everything’s said and done, is simply the smart thing to do. Small business owners often struggle to scale up because they lack the resources and knowledge to do so in the first place.
When you hire an accountant to share the burden, you give your business the chance to grow while also providing yourself the time and energy you need to focus on other aspects of your operation.
We provide accounting services for entrepreneurs in Boston, and we’d be happy to help you take your business to the next level. Send us a message to find out more!