Starting a business is an exciting endeavor, though it comes with pitfalls. While branding and operation strategies are essential, properly setting up a financial system is just as important, and is best handled by a business accountant. Sharrard McGee & Co., PA have helped business owners in High Point and Greensboro, NC, manage their financials for over 40 years and recommend spending the extra time early on to set your business up correctly.

3 Things to Know Before Starting a Business

1. Licenses, Rules, & Regulations

Regardless of what your business does, every industry comes with rules and regulations set up by the state and federal government. Compliance needs to be a priority, especially for financial management, so learn what licenses you need and what taxes you’ll need to pay. Many small businesses take a beating because they’re set up incorrectly. A business accountant can be an excellent resource for understanding the system, so consider working with a local accounting services firm.

2. How to Raise & Manage Capital

Unless you’re independently wealthy, you’ll need to secure funds to start your business. This may be from investors, bank loans, or partners. Whatever the situation, it’s important to know how to allocate and distribute this money across your business model.

Knowing where and how to use your money will pay off once you open your doors, and having it evenly spread will ensure you’re operating efficiently. Consult with a business accountant or tax consultant on the best practices. Their advice will help you establish a sound financial backing as you move forward.

3. In-House Vs. Outsourcing

The digital era has made it easier than ever to assemble a globally distributed workforce. Many businesses outsource contractors, payroll services, bill paying, and other accounting and financial services in their early years. Depending on your industry, it can be more efficient and save money that would otherwise be spent on benefits and other necessities a large in-house staff requires. However, this method comes with risks, so it's important to learn the rules of outsourcing before committing to this business model. 

If you’re preparing to start a business, turn to Sharrard McGee & Co., PA for financial services. A business accountant will work with you to ensure all your financials are in order and can offer valuable advice on how to manage your capital. Call (336) 884-0410 today to schedule a consultation at their High Point office or (336) 272-9777 for their Greensboro location. You can also visit their website to learn more about their services.