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What a Startup Business Needs

What a Startup Business Needs

What a Startup Business Needs

Many people dream of one day opening up a business that is entirely their own. Where there is no boss, no oversight and no dress code, at least for you as the owner. Opening a new business is no easy thing. Especially in a market where there is a lot of competition. A person wanting to open a fast food restaurant has to compete with all those giants already deeply entrenched in the market like McDonald’s or KFC. A person looking to open up a law firm has to compete with the ones already established and thriving.

A popular Dilemma

This is the dilemma faced by many new people looking for an opportunity. And at the same time this particular dilemma is what makes our whole economic system work. This competition is exactly what capitalism demands. There is no use for the unmotivated. United States is not called the land of opportunities for no reason.

The inventive, hardworking and ambitious can reach unimaginable heights in USA.

Impatience is not a virtue

Most startups do not start generating revenue immediately and have less than feasible employees. The startup may eventually succeed and become a proper small business but in the beginning, it is inevitable to accumulate losses while your products, customers, marketing strategy and infrastructure is defined. This period is essentially experienced by almost every single startup before they are able to create positive cash flow which is sustainable.

Your investors are another issue. Some can have the patience to wait for 2 or 3 years before seeing some returns, while others start demanding returns within the first.

The mysteries of a startup

As a pioneer, you will realize it soon enough, as countless others have realized before you, that you cannot do everything alone. There are better methods out there. Many things you will wish to do by yourself but you will realize to delegate some particular task to someone else who is an expert in it is a much better choice.

This is where Outsourcing comes in.

  1. Bookkeeping
  2. Accounting
  3. Income Tax
  4. Audit
  5. Insurance
  6. Law relating issues
These are but some of the services you can outsource to already established firms who have experience in such matters and have been dealing with them for years or even decades.

Why is Bookkeeping necessary for a Startup

Bookkeeping is one of the basic tenets which can make or break a startup. It does not appear as important in the beginning to many individuals, yet they come to regret it as soon as a problem surfaces which could easily have been solved had they kept proper books since the beginnings. In fact, many of the problems stem from not properly kept books and records.

A question may be asked what exactly may must one keep a record of in bookkeeping?

The answer is ‘Everything’;

  1. Receipts
  2. Bank statements
  3. Credit card statements
  4. Bills
  5. Invoices
  6. Cancelled Cheques
  7. Present and previous tax returns
  8. Insurance premiums etc.
You must also keep in mind that you must not just hand over all these records to your tax collector and then rest easy. You must keep them yourself as well for at least 3 years.

Here is a tip;
 

Digitize your records
 

Digitize all your records and receipts so you have a backup in case you lose the hardcopy.

The need for a CPA
 

A CPA (Certified Public Accountant) is an experienced business advisor. They can act as consultants on many issues you may face as in startup business. These issues may range from taxes to accounting. It is a duty of a CPA to make sure your organization meets its goals in a most efficient and most economical way possible.

Failing to have an accountant for your startup setting up your startup to fall

A startup founder is not an accountant. Founders are those people who have a passion or an expertise to provide a particular service. Their innovations can sometimes bring about a revolution in a niche market. However, knowing just one skill does not make your business successful in the long run. Setting up an accountant for your business is critical so they can help you understand cash flows and analyzing profitability.

SG Inc. CPA is the best provider of intelligent and hardworking CPA in Dallas. We have experience with this of more than a decade. Our vast client base and their glowing reviews speak of our success by themselves.

Importance Accounting for Income Tax

Another essential for a startup is an individual or a company which provides your business with accounting for income tax. An accountant of this nature understands your needs and guides you properly. You are provided with a fair view of the cash flow which will help you understand where you need to regulate the flow of the money and also where exactly you must invest more in order to reap best rewards from such prudent decisions.