Why Having an Accountant is Important for Startups

Iowa-based accountant Bruce A. Willey works as a consultant at American Tax Law Planning. Possessing nearly 30 years of experience, Bruce A. Willey of Iowa is a Certified Public Accountant who has worked with companies in a wide range of industries. He also frequently contributes to small business-targeted webcasts and websites.

Many startups believe that they do not need an accountant right away since their business operations are fairly simple. In actuality, startups need accountants even before they start operating. The reason accountants are needed so early is because they can provide entrepreneurs with valuable advice to ensure the company starts off strong. This often involves helping entrepreneurs determine the right legal entity for their company and understand the tax associated implications.

Once a startup begins selling, accountants continue their assistance by helping owners manage their business without worrying too much about finances. They often handle everything from keeping owners informed about their money and balancing the books to preparing and filing taxes. Since most startups operate with just one entrepreneur or a few employees, having this extra help is extremely beneficial.

As the startup continues to grow, accountants provide financial advice about seeking investors and growing a business financially. Poor accounting methods can keep valuable investors away, but companies that have had an accountant and accounting system in place since opening often do not have to worry about this.