self employment and taxes - what do you do?

Posted on: 12 September 2016

Now that you've decided to start a small business, it's important to find a reliable accountant to work with who will help you balance your books and ensure that you're on the right track come tax time. Here are three things to consider when consulting with potential accountants:

Database and Procedure Creation

One of the most important considerations to make when consulting with potential accountants is database and procedure creation. As a new business owner, you shouldn't be expected to create an accounting database for your service provider to work within.

Make sure that any accountants you consider working with are willing to help you create an effective database and procedure checklist to utilize that makes life easy for you and ensure that your provider can easily keep track of your income and expenses on an ongoing basis. In addition to ensuring that the accountants you consult with are willing to help you create these processes, it's a good idea to find out exactly how each service provider will accomplish these tasks.

Will they be using a sharable online database, an Excel spreadsheet, or a customized program to manage your finances? During each consultation, ask the accountants you speak with to provide you with a list of the programs, systems, and databases that they make use of so you can research them all and determine which options will work the best for your specific business.

Last-Minute Expenses

Another consideration to make is whether or not the accountants you consult with can handle last-minute expenses that are important enough to affect your financial bottom line when it comes time to balance your books at the end of the month. Some accountants have the ability to process your financial changes within just a day or two of recording them, while others may wait until the following month to track last-minute financial changes. Inquire about how last-minute expenses are handled during your consultations so that you know exactly what to expect if you decide to work with them.  

Service Connections

It's also helpful to ask about any service connections you'll have access to through the potential accountants you consult with. Many accountants have special relationships with other service providers and can offer you discounts for using those services. For instance, you may find an accountant that can provide you with discounts for using expert tax preparation providers, estate planning agents, and business advisors of various kinds that they have connections with.

Making these considerations while comparing various accountants to one another should help ensure that you choose a provider that meets all of your specific needs and expectations as your business grows. For more information, contact Michael Salomon CPA or a similar accounting professional.