Running your own business is rewarding, but it also comes with many obstacles. It is easy to overlook the importance of organizing your day-to-day operations and having a plan for growth. To avoid feeling overwhelmed, it’s advisable that you hire an accountant and an attorney, who can both be a valuable source of guidance and information on how to help your small business succeed.
Figuring out the more complex details of your business
There are more complex aspects of your business that can benefit from the expertise of an accountant and an attorney. One instance would be understanding the advantages that come with your business structure. Sole proprietorships, LLCs, S Corporations and partnerships, all have different regulations and can offer a range of benefits depending on the type of business you own, how many employees you have, etc.
Tax laws are a prime example of an area where regulations vary according to business structure, type, size, and other factors. An accountant would be able to explain the various tax implications associated with each structure; for example, there are sometimes more tax options available for corporations than for partnerships or proprietorships. Your accountant will then be able to minimize your taxes, allowing you to re-allocate those funds into your business.
An attorney can also be valuable in guiding you through government regulations and how you will be required to comply under each individual business structure. These laws are complicated, and an attorney would be able to explain them so you can avoid any misunderstandings that could potentially subject you to lawsuits.
Running your daily operations can seem like a daunting task. If you consult an accountant and attorney, you will be able to streamline operations with fewer setbacks. For instance, these professionals can help you maintain an organized accounting and payroll system; by continually keeping your financial records in order, you can minimize any hassle when your accountant is submitting your taxes.
Attorneys play a part in this by helping you prepare for the future. Corporate laws can change at any time, and by having a trusted attorney, you will be informed of any changes well in advance. Another area where an attorney could help you is preparing for lawsuits, which could result from a client getting injured at your establishment or an employee pressing charges for harassment. These two scenarios can cause serious harm to your business, including loss of revenue or even bankruptcy, so it’s important for an attorney to guide you on how to best handle them.
Growing your business
Now you are at a stage where you are ready to grow your business. As exciting as this is, it’s difficult to execute alone. Both an accountant and an attorney can identify any strengths that can propel your business forward, and weaknesses that could set you back. These could be from financial or operational standpoints, or even both.
Money is a key factor in growing your business, and your accountant will help you with budgeting to ensure you actually have the funds to invest in growth. This could mean evaluating whether you can hire more employees or move to a larger office. They would also review tax changes involved with expanding into different states or internationally.
Your attorney can also provide key assistance in reviewing lease agreements and ensuring that your business is registered correctly. As with the previous situations discussed, you would be protected from potential legal trouble with the IRS or respective authorities. Both your accountant and attorney understand the ins and outs of state and international laws, meaning you would benefit from all deductions and tax credits your business is eligible for.
Knowing how to keep your finances in order is a crucial part of running a successful business. For example, you might require a business loan, which could be in addition to any funding you may have secured when you started your business. In this case, an accountant would guide you on how to make an application that increases your chances of being approved.
Once you’ve received your loan, making regular repayments is extremely important for keeping a good credit rating, therefore, an accountant would be helpful in advising you on how to avoid falling behind on your payments. In the event that you face legal difficulties as a result of failing to repay your loans, an attorney will be able to help resolve the situation.
The COVID-19 pandemic has affected many small businesses across America. In March 2020, the U.S. government announced the launch of the Paycheck Protection Program (PPP). These loans were geared towards helping businesses stay afloat by covering expenses related to payroll, mortgage interest, and utilities. Other benefits included coverage for property damage due to civil unrest, as well as safety equipment, giving business owners peace of mind.
However, as of May 2021, the SBA announced the PPP has run out of money prior to its projected closing date of May 31. They will continue to fund any outstanding PPP applications, but are not accepting new applicants, although some exceptions are being made for applications received from certain community financial institutions. Both an accountant and an attorney would be able to help you determine if you still qualify or can advise you on an alternative through other relief programs.
Are you looking to grow your business, maximize the advantages of your business structure, and avoid the pitfalls so common to business ownership? A trusted accountant and attorney can make all the difference. Consult with your BradyRenner CPA today for more information.
Questions? Ask our team at : https://bradyrenner.com/contact-us/