As a new or aspiring small business owner, it can be overwhelming trying to get all of the behind-the-scenes pieces together. When you have questions, it’s nice to have a professional to help you. Is an accountant the advisor you’re looking for?
At CSI Accounting & Payroll, we have more than 50 years of experience in advising new businesses. Here, we address the questions you should ask your accountant when starting a small business, and we take a deeper look at some of the things an accountant may be able to help you with, including:
A chart of accounts doesn’t keep track of numbers as your books would. It lists out all of the different categories that will later appear on your profit & loss statements or balance sheets.
When your accountant helps you set this up, they will first find out what kind of business you’re running. They will then set up some common expense and income categories for businesses like yours before diving into the conversation more to discover your unique categories. Be prepared to discuss loans, equipment, liabilities, and much more!
It’s no secret that QuickBooks has a large majority of the accounting software market share. However, this doesn’t mean it’s the most ideal software brand for everyone - plus, there are different versions of it!
An accountant will narrow down your options to find the most ideal software for your business by asking you what you need your software to do. For example, a retail business is going to need software that works well with inventory. Read about CSI’s software preferences here.
There are three main entity structures: sole proprietorships, partnerships, and corporations. You can also be an LLC. Selecting your ideal entity means you minimize your tax liability; you’re structured in a way that’s most tax-advantageous to you.
Much like discussing your chart of accounts and software, an accountant is going to ask you some questions. They need to know details, including but not limited to:
This may be a misleading question. An accountant doesn’t set up payroll; they typically help you establish whether you need payroll yet or not. If you do need payroll, they may be able to refer you to a payroll service, though!
To find out if you need payroll set up, they will help you determine if your workers (if you have any) should be classified as employees or independent contractors. They will also ask you if you’re making any money yet. If you’re not ready for payroll yet, that doesn’t mean you won’t be successful.
If you work with CSI Accounting & Payroll, we’re able to set up your payroll in our payroll department. We have accounting and payroll under one roof!
You should ask your accountant all of the questions addressed in this article, as well as some of our favorites:
It depends. There comes a time when monthly accounting is the best option for all businesses - but you have to get there first!
You may be ready to consider monthly accounting as a startup if you:
If you’re ready to have a conversation about if we can be a good match, click the button below to schedule a free consultation!
Not ready to talk? That's okay! You can read more about when to get a startup accounting service first.