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.
Financial issues can break a small business. Whether the financial issue is the result of poor funds management or tax mistakes, money issues are never a good thing. For this reason, every small business should take their finances seriously—the best way to go about doing so is to hire a certified public accountant or CPA.
Audits
If you're a new owner of a small business, it's a good idea to start planning for audits. While there is no precise rhyme or reason widely known as it pertains to which businesses are audited, it's a good idea to assume that you will be on the IRS's radar one day.
When it comes to audits, you should always remember that they are meant to check to see if there is any additional money you might owe the government. If your records are not precise or there is even a slight miscalculation on your end, you could owe money in the form of late payments and penalties. A CPA keeps you audit-ready should the IRS ever show up.
Contracts
As you begin to expand your business, you might start to transition into more business-to-business partnerships. Particularly when it comes to large corporations, many businesses want to ensure that the company they partner with is who they say they are and capable of producing what they say they can.
A part of verifying this information is reviewing your assets, and sometimes, even your debts and expenses, which a CPA can keep organized for you. If you do not have this information readily available in an organized format, you could lose out on these contracts and the ability to expand your business.
Goal Planning
The goal of any business is to expand. However, in order to expand, you have to know where your company is and have a clear understanding of what specific things your company needs to reach these goals. A CPA does an excellent job of analyzing your finances to give you a greater view of where you are, while also taking your goals into consideration to help you determine what you need to do get there. As part of this process, a CPA can even help you budget and learn how to better utilize the assets you do have now to reach your future goals.
There is no size requirement when it comes to finances and business. Businesses of every size need to keep their financial affairs in order if they want to be successful. Contact a public accountant to learn how you can ensure your business is on the right track.
Share10 December 2019
