There are important decisions that are made early on that will define whether or not you will remain in business. In the accounting world a startup business really isn’t a business until you have done several of the following steps:

1.      Setup an LLC. I personally recommend my clients to start out as a Limited Liability Company. It’s a good place to start and for appearances the LLC gives your business more credibility. For tax purposes, it is a flexible entity that can be used as a single member, partnership or a small business corporation. These entities all have different tax consequences that should be discussed with your CPA prior to making that decision.

2.      Setup your books on QuickBooks. The next step in the process of getting a business started you will have already setup your banking and filed for all your tax id numbers through the IRS and your state agencies. Once that is completed you should purchase your QuickBooks Pro program and get started. All your purchases and income will be recorded from the start which increases your likelihood of them being included in your taxes. Shoeboxes are a highly overrated organizational system that never assures the expenses are all being captured. Miss a receipt and you miss a deduction.

3.      Setup a budget. Yes, that’s right. Setup a budget by forecasting what you believe your income and expenses will be. Many business owners fail to do this part because they become too busy and overwhelmed. A budget in your first year is a goal. In order to stay in business you must set little goals in order to reach your mark. The first year may be to just cover costs but without a goal you’re chasing a bull’s-eye that is ever changing.

4.      Setup a business and marketing plan. A business plan is a very valuable tool that will help you focus. Your focus will be what type of business you have and what market you will be serving. Once you focus, every decision that you make must be to further the marketing or business plan. If you’re marketing to a specific market then your money and decisions must be to support that focus.

All these steps are not and should not be made without the help of a CPA. We are trained to assist and help in the financial arena but have some unique insights into how business should be done. A public accountant is exposed to new and old businesses alike and could probably prepare you for a few bumps in the road. My specialty has been startup small businesses and I relate well because I am one. Call me so I can help you navigate through the inevitable potholes.



If you think an accountant’s role is limited to preparing and filing annual tax returns, it’s time to adjust your expectations. Many of our new clients are pleasantly surprised to find out how much work we’re prepared to take off their plate.

One of the biggest mistakes business owners can make is withholding information from their CPAs. While basic financial data— W2 and 1099 forms, real estate interest statements, receipts for business expenses—is important, we dig deeper to ensure a clear understanding of our clients’ businesses and long-term goals. Below are some of the most important things to convey to your tax professional before tax season:

• Major life changes. These can apply to your personal or professional life. Examples of events to share with your accountant include the merger or sale of a business, the purchase of a new property, or an impending divorce or marriage. Any of these things can impact the distribution of your business profits.
• Projected income changes. Whether you anticipate fiscal challenges or you’re about to launch a revolutionary new product that promises to boost your revenue, it’s wise to let your accountant know what you’re expecting. Your CPA can help with any cash flow or re-investment concerns.
• Retirement goals. Do you have a timetable for when you’d like to retire? As a self-employed entrepreneur, are you unclear on the differences between a traditional IRA and a Roth IRA? Regardless of your age, it’s never too early—or too late—to discuss retirement options with your CPA.
• New projects or investments. If your business is venturing into new markets or about to start offering a new product or service, this change in direction could have an impact on your tax strategies.

As you approach tax season, a well-informed CPA is one of the most important business tools in your repertoire. The more your tax advisor knows about your current situation and long-term plans, the better he or she can help you achieve your personal and professional goals.