Accounting Services Alachua Fl

Accounting Services Alachua Fl

PO Box 123 Main St

Gainesville Fl - Bronson Fl - West Hills Fl

Strong and Associates

866-654-3210

Bookkeeping Services

5 Things to Know about Accounting Services Alachua Fl for a New Business

Thus you've typically had the idea and dream of starting your own business and you are financially/professionally ready to put it in action. It has required a lot of hard work and determination to get to this point and your future moves are essential to the longevity of your unique entity. Even if you had Accounting Services Alachua Fl in high school or operated it throughout your professional job, there are a several items to highlight in order to start your new company on the right foot. To make sure your Accounting Services Alachua Fl for an all new company efforts are a success, follow these five tips.

Open a business bank account/ Develop a line of credit

The first step in Accounting Services Alachua Fl for an all new company is opening a business bank account. Owning a separate bank account from your private finances will make it much easier to track costs and will certainly come in handy come tax season. As a matter of ideal practice, you should do this for all entity types, with some exceptions for certain low-risk sole proprietorships. Next, you will want to start forming company credit, which, like a personal line of credit, takes history to increase. It is wise to shop around different banks/ credit card companies to see where you can get the lowest interest rate possible. This will also help you create liquidity (cash and unused line of credit) for purposes of growing your business. Even if you don't need the finances today, it's always effective to have it available in case you are presented with a special opportunity for company growth that may require excess funds.

Make accurate and reliable documents from the start

The second step with Accounting Services Alachua Fl for a brand-new company is record your income and costs. Now that you have set up a bank account, it is important to track every business related transaction you make. Bank statements basically aren't enough as you cant view all of your expenses/ earnings from a glance and able to cut or allocate finance accordingly. There are plenty of software programs that will aid and assist you in doing so such as Quickbooks Online, Xero, Freshbooks, Zoho Books, etc. These will let you to group financials in certain categories and can create balance sheet/ income statements for you on demand. Having this set up from the start will save you a lot of time in the future, especially during tax season or during an audit.

Keep cash on the balance sheet

A common mistake startups make when accounting for a new company is aggressive spending without monitoring the cash on hand. A typical Accounting Services Alachua Fl practice is to have at least 3 times 1 months operating costs on hand at all times. Figure out what that amount is and begin to create a goal to have that cash balance in your account at all times. This helps makes certain liquidity and allows for stability during economic downturns or periods of seasonality. Further, it can help avoid miserable conversations if you suddenly discover your poor cash management will cause you to miss payroll for your team members.

Generate a budget, forecast forward and compare year end results

A good way to measure and achieve success is by planning yearly goals and planning income statements from the beginning. Just setting a sales goal is not enough. Try to create a full income statement calculation for a certain period and try to budget each expense group. This will drive you to regularly evaluate business performance and see where mistakes are being made. It's important to reflect after periods to see various trends in your company and to fix problems before they can grow any greater.

Be aware your tax structure/ obligations

The structure of your all new business and how you pay workers, or general contractors, will considerably impact you tax obligations. Setting up the correct type of entity from the start is important in order to pay the lowest amount possible for your specific firm. There are many different types of websites that can handle this for you, however, it is highly encouraged to seek out a tax specialist to make sure it is filed correctly as errors can lead to overpayment and potential legal issues. The three main different types are listed below:

Enterprises are taxed on income and gains but also allow for a net operating loss carry over which can be used to decrease taxes the next 20 years following a year in which a company loses money.

LLC's use a flow through procedure where members are subject to tax implications at the individual level instead of the entity itself.

S-Corporations also use a pass-through method where income is divided amongst the investors (100 maximum) who pay federal taxes individually. An independent election to be taxed as an S-Corp needs to be made, and there is a deadline for doing so!

In conclusion, developing great Accounting Services Alachua Fl practices when accounting for a brand new business is essential for any kind of new project. Starting your company correctly and creating good habits from the start are keys towards your overall success.