Business startups need specialized accountants to provide financial insights, planning, and strategy to drive early success and growth. To help companies be successful, startup CEOs need insights into how their money is used and managed at every stage of growth.
Those demands are particularly critical in a company’s early days, when available dollars may be scarce. Yet with a sound financial footing, companies can be poised for rapid expansion.
That’s why smart founders look to accountants who specialize in startups. Using these professionals gives companies a leg up on the competition while providing financial structure and strategy. Here’s a look at some of the core benefits.
Specialized Accountants Ensure You Only Pay for What You Need
When you hire an accountant for your startup, you can pick and choose the services you need. As a new business, you likely do not need the services of a full-time, in-house accountant to whom you’re paying a full salary and benefits.
Instead, take advantage of the a la carte pricing and service-specific skills that accountants offer. For example, at first, you may need help with:
- Payroll
- Filing your taxes
- Handling accounts payable
- Handling accounts receivable work
Choosing those specific services will reduce your overall expenses and give you the financial insights necessary to run and grow your business.
Startup-Focused Data Tracking and Reporting
Information is key, especially in a business’s early days. You need data that:
- Shows you where your company is.
- Measures progress towards goals.
- Helps everyone involved understand how their role affects growth.
A startup accountant can help you identify what data needs to be collected and build the reports necessary to track performance measures. That data and reporting will be aligned with the growth focus that you need for business success. You can then rely on that data to help you make smart decisions about your business.
Specialized Accountants Know What Investors Are Looking For
Startup companies are often looking for investors. Much-needed cash infusions can help propel expansion, allowing for the:
- Hiring of new employees.
- Purchase of new equipment.
- Move into new products or sales areas.
A startup accountant will understand what investors are expecting and need from a company seeking early-stage financing. They can also assist in preparing a business plan, cost and revenue projections, market analyses, and other insights that an investor will want to see.
By providing these insights, an accountant can help you articulate your vision and identify the data investors expect before committing to financing.
Cash Flow Management
Having available cash is essential for any business. Many startups fail because they don’t pay enough attention to cash flow.
A lack of focus on cash can mean missed payments, leading to issues with creditors, employees, and reputation. It can also lead to missed profitable opportunities because the business does not have the available resources to act when needed.
With the right startup accounting in place, you can ensure your business has a strong cash flow that drives success. An accountant can help build a plan to improve your cash flow and monitor progress by analyzing:
- Cash in and out of the organization
- How diligent customers are in paying their bills
- How to optimize cash on hand
Specialized Accountants Understand Tax Planning
Taxes should not be just about April 15, especially for a startup business. While tax prep is necessary, tax planning should also be a top priority. However, it is often pushed aside by startup owners who are focused on other, more urgent matters.
A tax plan can save your business money both in the short and long term. A specialized accountant will work with you to craft a plan that will include:
- All of the deductions and credits you qualify for
- Clearance of tax laws
- A calendar of due dates
- Retirement planning
- Asset protection
- Etc.
With the right plan in place, you could save thousands while ensuring your tax returns are accurate, timely, and optimized.
Need a Specialized Accountant for Your Startup?
There are endless opportunities and pitfalls when starting your own company. Everything can feel important and there seems to never be enough time to get things done.
Financial needs are omnipresent.
Clearly, your startup could benefit from affordable, customizable accounting solutions, that address data and reporting, investment strategy, cash flow, and tax matters.
If you find yourself in this position, you need a partner like Pasquesi Partners. We specialize in accounting for startups and have experts who will collaborate with you to solve problems, giving you the time to focus on areas where you’re most in demand.
Pasquesi Partners helps with legal business structuring and registration with state agencies and the Internal Revenue Service, and payroll and insurance set-ups. Once your business launches, Pasquesi Partners is by your side, providing revenue recognition, cash flow management, and business plan development.
Talk to an expert at Pasquesi Partners to learn more with a complimentary 20-minute discovery call.