There is no doubt about the fact that entrepreneurialism is on the rise as an increasingly large number of wage slaves are trying their best to break free and begin their own businesses. However, before you ditch your corporate cubicles or your 9-5 jobs, you’d be better sure that you’re entirely ready to take the plunge into the business bandwagon. Before you start off with a business organization of your own, you need to make sure you know the ins and outs of starting a business.
CPAs or Certified Professional Accountants are the best people with whom you can speak to before you take a step on to the business industry. Though there are the best online sources like www.pstein.com from where you can get the best CPAs, yet let’s take a quick at the few vital questions to ask a CPA before taking the final step.
#1: In what way should I structure my business?
When you’re beginning a business of your own, you have to decide whether or not you would like to operate as sole proprietorship, an unincorporated business or a different type of business. Do you have a partner with whom you are eager to start off your business? A Certified Professional Accountant is probably the best person to identify the best option for you and also reduce the risks that are related with each option.
#2: In what way should I finance the organization?
You might choose to dip in your own personal savings or borrow money from friends and family when you think of financing your business. As long as starting a business is concerned, there can be no such right or wrong way of funding. So, when you seek help of a CPA, he will be the best person to tell you about your business funding options.
#3: Is this going to be a lucrative business?
We can’t deny that businesses live and die with the help of cash flow. This is why experts suggest sitting down with a CPA to design the financial projections which predict the time and the place from where you may earn your revenue. You will also require setting estimates of operating costs, start-up costs, repayment of debt and the costs associated with it.
#4: How am I supposed to set up my accounting books?
Expert financial advisors will always ask you to keep your business and personal finances separate. This clearly means you should have a separate account for business withdrawals and deposit and a separate credit card for bearing business expenses.
So, if you’re someone who is all set to start off with a business of your own, you should seek help of a CPA who has your best interests in mind and who gives you the best advice.