Accounting Tips for Business Startups in Nashville
With the current, business-friendly policies coming out of Washington DC, now might be a great time to start a new business. But don’t go into a business venture unless your eyes are wide open. Realize that the failure rate of new businesses in the first year is 50%, according to the Small Business Administration.
The main reason a business fails is that it runs out of money. This doesn’t mean the business was not a good idea or that there was no demand for its goods or services in the market. It usually means that the entrepreneur who started the business made some mistakes in planning or failed to do any planning at all, preferring to fly by the seat of the pants.
PHB CPAs is one of the leading CPA Firms Nashville businesses turn to when looking to start a new business. Here are some tips for business startups that might keep your business from being listed in the failure column.
It’s very tempting for an entrepreneur to try to do everything – wear all the hats – but when it comes to finances, it is better to get expert advice and help. Since money is at the heart of the success of a business, it only makes sense to consult with financial experts before starting the business and then to hire financial experts after the business is up and running.
Before Starting a Business
Consult with a financial expert before starting. The consultant should be able to help you determine your true start-up costs and forecast the funds you will need for operating the business until it starts to turn a profit.
After Starting a Business
Realize that you don’t have to turn everything over to an accountant. Do the things that you can do and will do on a timely basis, hire a bookkeeper to help you with the things you aren’t comfortable doing or don’t have time to do. A good bookkeeper can start you off with a good record keeping system that will produce reports to help you monitor your cash flow and your profit margin. For end-of-year tax planning and tax returns, you should use an accountant.
Choosing the Experts
Many accounting firms have different levels of service that they can offer you, including consulting, system set-up, bookkeeping, payroll services, data entry, year-end tax preparation, and so on. If you can work out a set of services that fits your budget, you will benefit from the continuity and sharing of data by using the same firm.
About PHB CPAs
PHB CPAs is a CPA firm in Franklin, TN that specializes in business accounting, individual tax preparation and non profit accounting. We also have a great deal of experience in construction accounting working with a wide variety of construction firms and general contractors in Greater Nashville. Please contact us to learn more about what we can do for your business.