This past year was the first year that I was fortunate enough to work from my home. Working from my home has been a wonderful change for both personal and professional reasons. The only thing that caused a slight issue was the tax filing changes that I had to endure. The office in my home was now considered a tax deduction. I had to get some help learning how to deduct the things that are allowed on my federal taxes. If you are new to working from home and have a home office, this blog can help you learn what you need to know before tax time rolls around.
According to studies, 80% of businesses fail after the first year which means that if you are starting a new business, statistics are unfortunately stacked against you. If you are anxious about starting your business because you're so worried about failure, then there are a few things that you can do to set up your business' finances successfully. Read on to learn more.
Hire a Business Advisory Firm
A business advisory firm may be your most worthwhile investment when you start a business and is an investment that you should continue using for the entirety of your ownership. Business advisory firms work to help you make the soundest investments, financial decisions, and money management choices. Specifically, they can help you with things like ensuring that you have enough money saved in reserves that if you were to have several slow months, your business wouldn't go under. Additionally, they can advise you on whether or not you have the money to hire on a new staff member and how much you can pay them.
Hire a Business Accountant
In addition to hiring a business advisor, make sure that you hire a business accountant as well. Your advisor is there to help you with all of your large financial choices whereas your accountant can help you with everyday tasks like balancing your books, monitoring your accounts, and at the end of the year, they can help you file your taxes if they are certified.
Make sure that your business accountant either works in your Human Resources department with payroll or that they handle the payroll themselves. Because a lot of your money is going to go toward overhead expenses like payroll and your rent, you need to make sure that your business accountant is monitoring these things closely.
Starting a business can be a very exciting and very scary endeavor to even think about. If you have always had a dream of owning a small or large business, then you may as well put that dream to work and get going with that big idea. Even though the financial aspect of owning a new business can feel a bit rocky for a little bit, it will hopefully get better after around your five-year mark of ownership. Although the tips in this article are certainly not fool-proof, they can hopefully help your business to succeed a little more than without these tips.
For more information, contact your local accounting firm.Share
30 July 2018