Do i need to have an accountant for my small business?
My wife and i are starting a small cafe. We are set up as a general partnership, so as far as i know the taxes are pretty straight forward…should i still hire an accountant? if so, when is the right time to do so (we are about 3 weeks from opening our doors)?
Hi-
Firstly I sugest you look at the way you are trading in a partnership both "partners" are personaly liable for any liabililities that the business occurs. This been your wife means should the business not succed for any reason or your business is sued for something beyond your control both of you will be held liable. Also if one of you should die, the business legaly should cease to exist. That is why proffesional people have partnership agreements that adress the implications of a partnership.
Having said that – I would highly reccomend you make use of an accountant to help you set up your accounting system. Help with your costings and stock control. A small cafe envolves plenty of inventory controls and etc. You will also want to monitor certain products so you can place orders effectively.
Then the tax part – in SA we have Value Added Tax in othe countries there are different types of tax on the sale of goods. It certainly helps to have an accountant help with the VAT claims etc.
The right time do so is NOW let him help with your costings and inventory this takes time – each product needs to be entered on your accounting system! He can also help with pricing. Many first time business owners make mistakes with Gross Margins – It is even more complicated when there is inventory. Incorrect pricing can cause your business to fail.
Eg. When one buys something for $10 and sells it for $20 you have not made 100% you have made 50% GM less inventory caculation.
If I where you call a small accounting firm or bookeeper to assit you and build a relationship with you.
GOOD LUCK!!! I hope your business will be successful.
Recommended Reading
- How To Choose The Right Small Business Accountant
- Quickbooks services By a CPA as a part-time accountant (Downtown Scottsdale or within 8 miles)
- DO YOU USE QUICKBOOKS? Is your CPA charging you an arm and a leg? ((Rates 45/hour -Accountant QuickBooks 19 yrs exp.)
- I’ll help you do your taxes for $20. Learn from me, never pay again. (Kissimmee / Orlando)
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I bookkeeper would suffice to help you and your wife get accustom to doing business books, if you are not already. But I would have an accounting do my taxes, there are so many new tax laws that they can really help you so you don’t over or under pay your business taxes.
A bookkeeper can do your payroll, pay your taxes (both payroll and sales), keep track of your account receivable. Usually it is a cheaper and easier way to go and a good one will be able to help you out tremendously.
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Unless you are extremely adept at filing taxes, I would definitely hire an accountant. They are the most knowledgeable with all of the complicated tax laws. I have one friend who owns her own business who does her taxes herself, but I personally feel that having an expert handle your taxes will probably save you money that you did not know you could. Good luck with your new business.
References :
Hi-
Firstly I sugest you look at the way you are trading in a partnership both "partners" are personaly liable for any liabililities that the business occurs. This been your wife means should the business not succed for any reason or your business is sued for something beyond your control both of you will be held liable. Also if one of you should die, the business legaly should cease to exist. That is why proffesional people have partnership agreements that adress the implications of a partnership.
Having said that – I would highly reccomend you make use of an accountant to help you set up your accounting system. Help with your costings and stock control. A small cafe envolves plenty of inventory controls and etc. You will also want to monitor certain products so you can place orders effectively.
Then the tax part – in SA we have Value Added Tax in othe countries there are different types of tax on the sale of goods. It certainly helps to have an accountant help with the VAT claims etc.
The right time do so is NOW let him help with your costings and inventory this takes time – each product needs to be entered on your accounting system! He can also help with pricing. Many first time business owners make mistakes with Gross Margins – It is even more complicated when there is inventory. Incorrect pricing can cause your business to fail.
Eg. When one buys something for $10 and sells it for $20 you have not made 100% you have made 50% GM less inventory caculation.
If I where you call a small accounting firm or bookeeper to assit you and build a relationship with you.
GOOD LUCK!!! I hope your business will be successful.
References :
I agree with all of the other, you will need to hire an accountant at some time in the future. However, as a QuickBooks ProAdvisor I would recommend that you get some sort of accounting program right from the start. I have used Peachtree and that is a good program, I am also a Microsoft MPAN ( microsoft professional accountants network ) Consultant. However based upon ease of use and the learning curve needed to get started I HIGHLY recommend QuickBooks. For further information on which edition to buy I have them laid out on website is a simple to understand format. http://www.candhconsulting.net. This is NOT I repeat NOT a sales pitch as this is not the format for that type of thing. The information is there if you want to look.
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