A small business lets you follow your passion, produce something from the ground up, and manage your own time. But starting a business is not cheap. Thankfully, you can become an entrepreneur without burying yourself in debt. There are many ways to reduce your Phoenix business startup cost, and an accountant and financial consultant can help you with this. Read on how hiring a skilled accountant can help you launch a successful business:
Making Financial Projections
Your business plan should include financial projections. With these projections, you are aware of your current financial situation and can predict full profit potential. But many startup owners are too optimistic with their financial forecasts. While you may have conservative calculations at first, it can take longer to achieve your business goals. An accountant can look into your income statement, make cash flow projections, and summarize balance sheet numbers. They can provide you with information you can easily understand, including tables and charts for demonstration.
Estimating Startup Costs
Once you have a detailed financial projection, your accountant can clearly view your startup costs. Not estimating your startup expenses is a mistake. Depending on your type of business, you may need to plan the costs related to renting a space, hiring people, and filling inventory. Also, you should not overlook the costs associated with advertising, marketing, and office equipment. In fact, you should also take into account the legal fees involved when you set up a partnership or limited liability company.
Managing Investments and Loans
When you start a business, you may need to use your personal savings, a bank loan, or investments from another party. As money can come from different sources, monitoring payment deadlines and the amount you owe can be hard. A skilled accountant can help you choose the best financial option for you and make an effective payment plan. Also, they can help you decide whether you should consolidate or refinance loans or reduce unnecessary spending.
The success or failure of your startup can depend on your ability to manage your finances. And whoever you want to handle your accounts, it’s your personal decision. You may be confident that you can manage your finances or choose to focus on your core tasks and let an accountant handle your business’s numbers. No matter your decision, remember that hiring an accounting expert can be worth the cost. They can help you make realistic financial projections, manage your investments and loans effectively, as well as estimate your startup costs.