Starting a business requires a lot of careful planning. When it comes to your finances, it’s worthwhile to meet with an accountant before getting started. They can go over a wide array of topics with you and answer the most important questions as they relate to your business. Here are common topics of discussion to bring up with your accountant. 

What to Discuss With an Accountant When Starting a Business

What’s the right structure for my business?

Businesses can be set up in a variety of ways, and the one you choose may impact how you’re taxed and other legal obligations. If you’re running a solo business, you may choose to operate as a sole proprietor. Those with multiple founders can opt for partnerships.

There are also LLCs and corporations, which limit your personal liability when operating your business. Your accountant can go through your finances and business idea to help you choose the most viable option.

What might my cash flow look like?

Cash flow is the key to running any potential business. Before starting, work with your accounting firm to determine where your earnings will come from and how much you can expect to start.

You should also go over any necessary expenses so you can make sure you’re able to cover those with the cash you have. If not, you may need to seek outside financing to get up and running.

Can I quit my day job?

Many entrepreneurs jump right into business ownership, but this isn’t always the best option. If you’re currently in a stable job and aren’t sure how much money your business will be able to earn right away, it may be worth considering running a side business for some time. Go over your personal savings, financing options, and cash flow opportunity to determine whether giving up a steady paycheck is realistic or not.

What are my tax obligations?

Businesses and individuals both need to pay taxes on their earnings. The exact tax codes and rates that apply to your business depend on the structure you choose and how much money you make and spend.

Since your taxes don’t come out automatically like they would when you earn a paycheck from an established business, you need to plan for these expenses. Your accountant should be able to help you structure your books so you can set aside the necessary funds.

If you’re ready to meet with an accountant to discuss your new business, contact JJR & Associates LLC. The accounting firm serves businesses and individuals throughout the Greater Atlanta area. They offer tax prep, business consulting, bookkeeping, and payroll services. These experienced professionals can offer personalized guidance to fit the needs of each client. Visit the website for a full list of services or request a consultation by calling (404) 437-7748.