If you’re a business owner, hiring an accountant for expert advice is a good idea for your finances. So before you book an appointment, here are some questions you may want to ask your business accountant.
- What does an Accountant Do?
- When to Hire a Forensic Accountant?
- How Small Business Owners Can Manage Their Accounting?
- How Accounting and Accountants Help Small Businesses?
Do you have experience in the line of my business or industry?
Businesses are handled differently from an accounting or tax standpoint. Therefore, it’s alright if you ask about the experience of an accounting firm or business accountant with your type of industry. Finding an accountant that understands you and who specializes in your field may greatly help your business since they are likely going to be able to answer the specific questions your business will face in day-to-day operations.
What kinds of records should I keep?
You should check your business records and keep an updated document to file taxes, monitor profit, and secure external funds. Keep a list of the following records so that when your accountant needs it, you can provide these legal papers immediately:
- Revenues – To keep track of your profit, always focus on the following areas namely, retaining existing customers, generating new leads, converting new leads to customers or new jobs, return customers, pricing strategy analysis, and ways to sell more on every transaction.
- Operating expenses – This may include rent, pieces of equipment, inventory costs, marketing, insurance, payroll, step costs, and funds allotted for research and development. Although operating expenses are unavoidable, this is necessary for most businesses and ways to reduce it should be determined while still maintaining a competitive advantage.
- Tax remittances – Tax payments from appropriate government agencies
- Wages of employees/payroll
- Asset purchases and sales
What type of structure is best for my business?
Knowing what type of business structure you have is important for your tax liability. Here are the four types of business structure:
A sole proprietorship is ideal for businesses that only have one owner. The legal entity of the owner and the business is the same, hence, the owner is liable for any debts.
If you have a business that’s owned by two or more people, your business has a partnership type of structure. Just like a sole proprietorship, the owners and business partners are responsible for all company debts.
A corporate is another type of business structure that has a legal entity that is separate from its owners. Therefore, the owner’s personal assets will not be affected if the company has acquired debts.
A limited liability company or LLC combines limited liability features of a corporation and tax efficiencies and flexible operations of a partnership. Personal assets of owners are not affected by the company’s debt and owners share tax responsibilities.
These types of structures will be discussed to you by your accountant to help you decide what is the correct legal structure for your business.
What is my break-even point?
Break-even points are your costs or expenses divided by the revenue per unit minus the variable costs involved with a product or service. Your accountant can help you determine this by using various measurements. Understanding your break-even point is essential for your company’s profit and loss. It will help you regulate the pricing of your product and services. Have your accountant review your financial records to help you decide how many products can you sell to cover the costs.
How can I best communicate with you?
To maximize the guidance that an accountant can provide you with, you need to know if you can meet personally or online. As of 2020 many accountants are opting for online-only work, unless in-person meetings are absolutely necessary due to COVID-10. As a business owner, constant communication with your business accountant is crucial, especially if you’re just starting out. Ask your accountant how often he recommends a meeting to discuss taxes. The more frequent you communicate with your accountant, the more likely you can receive pieces of advice that you may not always want, but will always need to hear.
Looking for a trusted CPA firm in El Paso, TX?
Are you looking for a Business Accountant in El Paso? If you have any questions regarding small business accounting, forensic accounting, tax problems, tax planning, nonprofit accounting, payroll tax, etc. give our firm a call!
Marcus, Fairall, Bristol + Co., PLLC
230 Thunderbird Dr Ste G, El Paso, TX 79912
Phone: (915) 775-1040