If you are bootstrapping or starting a small business, especially during a pandemic year, then your cash flow and cost management are a top priority. This Business Kitty made many mistakes in earlier days as a founder, trying to do everything herself because of cash flow concerns. We at Atlas Bookkeeping see businesses DIY their books ALL the time in the early days. We understand why, but we are also sad when our clients ended up wasting more money and opportunity than if they’d simply hired us in the beginning. We are here to help. Genuinely. Free advice in the meantime? Hit us up.
Many/most small business owners do NOT have an accounting background, and yet they attempt to do their own bookkeeping. If you lack experience in managing the books of a business and expect to learn as you go, you should think twice. Managing your own accounting system incorrectly can hurt your business not only now, but also in the long-term. Expensive mistakes can be made.
If you are a founder with financial or accounting background, then you probably CAN do your own books without too many costly errors. However, if you are trying to grow your business to a level of success, should you really be spending your time on these details? It’s only taking away energy from your other, more crucial responsibilities.
Researchers have learned through ancient DNA that cats domesticated themselves, and now humans take care of many things for cats so they don’t have to. How clever! If you are an entrepreneur, you might want to learn a few things from cats. Learn to delegate. Be wise enough to invest in your business, which is a different mentality than simply trying not to spend money. While we’re talking about how cats are smart (sometimes): if you are not getting enough sleep as a founder or business owner….don’t forget to get enough rest 🙂
Here’s an overview of all the ways a bookkeeping service like Atlas can help your small business:
Initial Start-Up Process
When you start a business, there are many actions you need to take and systems you need to set up to create the foundation for a successful business. An accountant can help by:
- Determining the best business structure (i.e., sole proprietorship, LLC, corporation, partnership) for your situation.
- Assisting with the financial analysis in your business plan.
- Providing advice on the type of accounting software you may need.
- Providing advice and assistance on opening a business bank account.
- Making sure your accounting procedures comply with government regulations and requirements.
- Providing advice on how to track expenses during your daily business activities.
- Explaining the importance of keeping personal and business expenses separate.
Once your business is off the ground, you will need to maintain it. We at Atlas can help you (or point you in the right direction) by:
- Ensuring that your independent contractors are classified as such (and not employees) by the IRS.
- Explaining your financial statements so you can understand the ins and outs of your business.
- Overseeing company payroll and payment processes.
- Providing advice on estimated tax payments you should make during the year.
- Determining when, and to whom, you should send W2 and 1099 forms.
- Closing out your books and creating financial reports at the end of the year.
- Compiling and submitting your taxes, financial reports, and paperwork to the IRS.
When you are ready to grow your business, pandemic or not, we can:
- Help you determine areas for growth by providing insight on cash flow patterns, inventory management, pricing, and business financing.
- Provide advice on property and equipment leasing and purchase.
- Help you prevent getting audited by the IRS.
- Prepare you for and guide you through an audit, working alongside your CPA.
- Create financial forecasts so you can make better decisions in your business.
- Work with you to create a business budget that will support your business goals.
- Provide advice and resources to assist you with the sale of your business.
The most important thing you can do when it comes to your business finances is to recognize when you need to enlist the help of a professional, and then find a service with a true partnership mentality (how about Atlas Bookkeeping!) to help maintain the fiscal health of your business.