3 accounting challenges your startup may face and how an accounting firm can help
When starting a new business, establishing accounting practices will be essential to your success. However, many startups aren’t sure what those accounting practices are. Here are three accounting challenges your startup may face, along with tips for dealing with them.
1. Keeping a steady cash flow.
A steady cash flow ensures that you have what your company needs to hit the ground running. Still, if the cash leaving your company exceeds the cash coming in, you are going to experience problems. New companies need to avoid cash flow problems by staying on top of their finances, minimizing expenses and maximizing revenues. This is easier said than done and while at first, staying on top of your finances may be simple but later down the road as your business grows you may need to hire Galt Accounting to keep track of your finances.
2. Paying taxes Nearly every business is required to file and pay taxes. Unfortunately, tax law is complicated, especially as it applies to businesses. Tax requirements vary based on many factors, including the business's structure, income and more. For startups, this is often the most difficult challenges to overcome. While some startups may be able to handle the taxes on their own it is not always the best decision. Galt Accounting will help navigate your business through the whirlwind of tax laws and provide a solution tailored to your business.
3. Unforeseen expenses
No matter how well prepared your business something can happen that can rock your business. For example, If a retail store, after expenses, earns $150,000 per year it may seem to be in a good shape, but then that slip-and-fall lawsuit against the retail store costs them $1.3 million and there is no insurance coverage. Even smaller expenses, such as one-time government tax on all businesses in a particular region, or rise in the cost of goods, can cause major changes to the bottom line. An accountant can help you be prepared for these rocky times when you have to watch your finances closer than ever.
An incredibly important task for every small business is deciding the right accountant for their business. An experienced accountant or CPA can help your business avoid all the above accounting mistakes. Galt wants to be that accountant for you. Schedule your free consultation today.
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