We all have dreams; things we’d like to accomplish and lifestyles we’d love to pursue. Sadly, too many of us see our dreams as more pie in the sky than real possibilities. For example, many people dream about starting a business, but the potential risk keeps most of us from doing so. The difference between you and this majority is that you’re ready to actually go after those dreams.

Once you have a solid business idea, it’s time to get your other ducks in a row. There are many keys to a successful startup, but we’ve chosen 5 steps where all too many new business owners go wrong. The idea is to help you steer clear of common errors and help your startup stand the test of time. So let’s go!

1. Skip the market research
   If failure is what you’re after, then nothing is more effective than not doing your homework. Whatever you do, don’t conduct any market research before finalizing your business direction – because that can lead to absolute success! In all seriousness, market research is a MUST. You need to know that there is an active market for what you plan to offer. Who is your audience? How large is it? Who are your competitors, and are they well funded? Before you begin your venture, you need to understand what the market wants and needs from you, and how to reach out to them.
2. Go in blind
   Nothing ensures a rocky start like hitting the “go” button without a plan. Business planning is vital, and should include much more than a marketing strategy. Smart business planning requires the correct legal structure for your business (hint: you’ll need an attorney). You’ll also need a legitimate revenue model, accurate financial forecasting, and yes — a budget.
3. Don’t protect yourself
   There is no better way to go down in flames than to start your business without legal protections. Aside from setting up your business properly for tax and liability purposes (see number 2), you must put protections in place for your intellectual property. Make sure you have any licenses or copyrights required. Establish accounting policies and business accounts. Document business procedures. You must also take steps to protect your own assets from potential lawsuits that stem from your new status as a business owner. It happens — be ready.
4. Don’t raise capital
   Most of us can’t afford to fund operations ourselves, so you’ll likely need investors or even crowd funding to raise money for advertising, product development, etc. You must convince investors you’re a wise risk, then ensure those funds are properly used and accounted for.
5. Always go it alone
   Successful businesses are built by people who seek out solid partners for the early stages and beyond. Decide what roles need to be filled and what type of people should fill them. Define each person’s responsibilities. Make a plan to compensate your employees with a good payroll system. Third-party professionals such as accountants and attorneys can offer vital support as you start and grow your company.

Starting a business is exciting and fast-paced, much like a new roller coaster. While there are always unexpected twist, turns, and hills to climb, careful planning and quality support can go a long way to ensuring success and longevity.

If you’re one of many small business owners experiencing robust company growth, you understand how things can change with your success. The expansion of your operation is a great thing. However, growth comes with a new set of challenges. One of those challenges is making sure your legal business structure is appropriate for your business moving forward.

Expect the Change – But Get it Right

As your business expands, entity restructuring is one of those growing pains. Throughout this process, however, keep in mind that the way your business is set up in the eyes of the law has a domino effect on everything else you are able – or unable – to do. Tax liability, business loans, regulatory compliance, and your own financial liabilities rely heavily on having the proper structure in place.

Once your structure is set up, the last thing you want to do is start the process over again in a few years. Legally, this would be akin to re-starting your business from scratch. As you can imagine, this represents a major disruption in your ability to run your business and make a profit. Getting the restructuring process right the first time can help you avoid:

• Excessive taxes
• Loss of productivity
• Losing personal assets in a lawsuit
• Missing out on potential funding
• Auditing and accounting risk
• Legal and tax trouble
• Lots of stress

How Should My Business Be Structured?

Which business structure is right for you will depend on a lot of factors. How likely are you to be sued? Are you doing business internationally? Do you have business partners? What is your expected revenue? How many people do you employ? These and other questions will help you determine whether you should be structured as a sole proprietorship, LLC, partnership, corporation, s-corp, or something else. It’s a complicated process that warrants some personal attention from an expert.

Where Can I Find Help?

The only way to ensure the you’ve chosen the proper structure and set everything up the right way is to use an experienced attorney. They know the federal, state, and local requirements for doing business. They understand tax law, business and personal liability, and more. After all, it’s more than the success of your business on the line: it’s your financial well-being, your reputation, your personal assets — even your freedom to do business at all.

As you can see, entity restructuring has some far-reaching implications. If your business is growing and you’ve ever wondered about your current structure, call an attorney today to examine your current and future needs. You’ll sleep better tonight.

It’s said that with age comes wisdom– which I certainly hope is true. Though seasoned veterans of the business world still make mistakes, they have one large advantage– experience. If I could talk to my 20-year old self just setting out into the workforce, I would share these simple lessons that would save time, energy and a lot of headache.

Make a Detailed Business Plan First

Your business idea may be fantastic, but harness your excitement and use that energy to create a detailed plan. Your homework should include an in-depth look at the competition and how your product fits the market. On the financial end, you should gather enough data to show expected cash flow as well as showing potential risks facing investors who decide to join you. Spend time creating a polished executive summary showing clear objectives and direction for your company.

Hire A Professional Accountant

When you are serious about starting a business, consult a professional accountant to guide you toward the best financial structure for your needs. If you find the right accounting firm, they can also relieve you of bookkeeping, payroll, and tax preparation as your company grows.

Brand Yourself

Branding is in the details. From name, logo, and marketing strategies, each aspect of your company’s image should say the same thing. Developing your brand will make your company memorable and can increase profitability when matched with a great product.

Forget Pride and Ask for Help

You may be in a top-notch business school or perhaps you’ve helped run the family company for so long that you feel secure in your business abilities. Though education and prior business experience are helpful, don’t get over confident in your abilities. Recognize the value that lengthy experience provides and don’t be afraid to seek counsel from seasoned professionals. Depending on the issue, hiring a consultant may be advisable.

Be Real

Having confidence and enthusiasm are important qualities for business people but pretending to have every answer when you are clueless can make you seem fake and untrustworthy. A better approach is being optimistic but honest. A client or customer would much rather you admit you don’t have the answer but are willing to find it for them.

Don’t Take Rejection Personally

Success isn’t certain in business but rejection is. It’s a hard pill to swallow, but not everybody is going to be fond of your products and company. Though research shows the mind reacts similar to rejection as it does physical pain, consider negative responses to your company as an opportunity to reevaluate your goals and purposes instead of taking as a personal attack on you and your business.

Schedule Time Off

Burn-out is real. Though you may have more disposable energy in your 20s, making time for mental, emotional, and physical breaks from work is vital to your overall success. Find balance between dedication to the job and other aspects of your life.

Offering a great product, developing a detailed business plan, and designing clever marketing strategies are the fun part of starting a business. However, don’t overlook the importance of how you manage your accounting as a vital component to your long-term business success. Consider these common accounting mistakes made by small businesses and how hiring a professional accountant will help you to avoid them.

Choosing the Wrong Business Structure

From the onset, choosing your business structure involves crucial accounting decisions that will affect how you pay taxes. Hiring a professional accountant who is versed in IRS business tax categories will inform you of conditions you qualify for and risks associated with each model. Choosing the best tax category for your company can save you thousands in taxes and will affect your bottom line.

Missing Out on Tax Deductions

Think you know the tax system well? Since 2001, the tax code has changed more than 3,250 times. In one year alone, the tax code had over 500 changes. Though many small business owners have basic understanding of the tax system, they may be unaware of some of more subtle nuances of the tax code. Unfamiliarity with code changes can result in missing out on important deductions or lead to penalties. Hire an accountant whose entire job depends on staying up-to-date on tax code so you don’t overlook these money saving deductions.

Spending Hours Doing Taxes Instead of Focusing on Your Business

They say time is money and the same holds true in business tax preparation. Companies filing their own taxes can spend countless hours trying to navigate and correctly complete their tax forms. About 7.6 billion hours are spent every year on filing. It’s no wonder almost 75% of unincorporated businesses hire professionals to do their taxes. A well-trained accountant will know the proper forms for your business structure and will clearly outline what information they need from you before filing.

Only Considering Taxes When They Are Due

For many small businesses, the IRS expects estimated tax payments. Instead of paying a one-time tax in the Spring, these payments are required quarterly. A professional accountant will know whether your company is expected to file four times a year and help you complete the 1040-ES form used to calculate each payment. Your accountant will also help you determine how much extra money to set aside in case your yearly taxable income is higher than initially estimated.

Getting Tax Help From Someone Without Experience

Maybe you’ve already decided that it is best to hire someone to help you with your taxes. Before you trust anyone who says they are a professional tax preparer, get the details of their experience level and qualifications. Verify that the accountant has obtained a preparer tax identification number (PTIN) from the IRS. Choosing a proficient accounting professional can help you avoid these small business mistakes, saving you time, money, and headaches when managing your finances.

Many events, such as working on a car, dealing with medical matters or seeking spiritual help, require the insight of a professional. While you might think that you can handle finances on your own, research shows that you probably need professional help with money management as well. One study shows that investors who meet with financial planning professionals before making major money-related decisions wind up better off than those who don’t. Read on for five life events when you will need professional advice.

Receiving an Inheritance

According to Consumer Reports, up to 80 percent of inheritances are gone within 10 years. A windfall might only magnify bad financial habits. Whatever your spending style, a financial professional can help you create a plan for your new state of affairs that will keep you on track toward your financial goals, such as adjusting your retirement planning and managing new investments. Your financial adviser can further assist you with navigating tax payments, charitable contributions and more.

Starting a Company

If you’re launching a startup, you will need to focus on the daily running of your business, leaving you with little time to plan. In fact, 30 percent of small-business owners haven’t sat down to figure out how much money they’ll need to retire. Even if you’ve made plans for your retirement, you can likely benefit from advice on smart investing for the future. A financial planner can also help you with taxes and help you take advantage of available business loans and grants.

Accepting a Severance Package

When your employer offers you a severance package, a financial professional can serve as a valuable resource to provide rational counsel. Don’t agree to a severance package until you’re confident that you understand its details. In most cases, you’ll have 21 days to look it over and negotiate the terms. A financial adviser can also help you plan how to make the most of your severance package while you’re looking for new work.

Getting Married

People are waiting longer to get married these days than they did in past generations, which means it’s more likely that you’ll have accumulated financial assets and responsibilities before your wedding day. A financial professional can help you get all of your ducks in a row. Even if you’re just getting started in your career and don’t have any significant assets, talking through money-related issues before your wedding helps create a foundation of trust that can steer you away from quarrels in the future.

Expecting a Baby

A lack of financial planning now will have an effect that goes beyond just yourself and your partner since you are now responsible for a child. By planning sooner instead of later, you can save for baby’s college, plan for parental leave and budget for new expenses once your baby arrives. You may also want to take out additional life insurance. Plan before the baby comes so that you feel more prepared.

As a small business owner in Cedar City, you have refined your skills but have technically become a jack of all trades instead of the master of one. You find yourself distracted with accounting, payroll, legal compliance, annual statements, government reporting and taxes, which all keep you from doing what you love.

If this sounds familiar, then you need to hire a good certified public accountant to help increase your profitability.

Making the Most of Your Time

You are likely spending your valuable time at tasks that don’t relate to your area of expertise, which costs your business money For starters, think about the time you spend on tax preparation. If it takes you 10 hours to prepare taxes, and you generally charge your client $50 per hour to provide services, then it costs you $500 of productivity. That $500 only represents a starting dollar amount. It doesn’t include face time, your stress level or paying employees to do what you do.

Mastering the legal system requires study that steals valuable time, and time is money. It’s not just the time it takes to master the legal system, but the cost of mistakes as well. Small mistakes equal big money when it comes to both penalties and simple errors that you could avoid. One CPA reports that a larger client paid an unnecessary $4 million in taxes because of a preventable tax mistake. While this might be an extreme example, even a $4,000 or $400 loss is painful, especially when it’s unnecessary.

CPAs: More than Tax Preparation

So far, the tax and legal aspects might convince most small businesses to use the services of a CPA. However, additional reasons might further weigh on your decision. If you need a small business loan, you’ll need a business plan. You might have 80 percent of the funds that you need, but a CPA can fill the gaps to make your plan go from mediocre to top notch to secure that loan. Legal issues extend beyond taxes with government rules further complicating the process. Of course, a good CPA can help you navigate that difficult terrain, which will come in handy if you are ever audited – and you’ll need a CPA for that as well. A competent CPA can help with the following:

• Employee matters, including taxes, vacation accruals, direct deposit, retirement and more
• Business taxes
• Balance sheets
• Financial statements
• Annual reviews
• Profit-and-loss statements
• Business continuation plans
• Bank accounts and more.

Learn how a CPA Can Help Your Business

Your best bet is to call a Cedar City CPA to find out how he or she can help you. Organize a list of tasks, Estimate how much it costs you to accomplish said tasks, and make a phone call. While you might find out that you don’t need a CPA, you might learn that a CPA can help you grow your business.

Filing your taxes can be a hairy endeavor, especially if you try to prepare them yourself. There are lengthy forms to fill out, laws to understand, and plenty of paperwork and information to gather. Sometimes doing your own taxes seems like a headache that just isn’t worth it. That makes hiring a Southern Utah professional tax preparer even more appealing to many of us (especially if you own a business).

When you finally decide to go with a tax professional, you might have a lot of questions. Fortunately, there are plenty of people who are trained to answer those questions and take care of the filings for you. However, before you choose a tax preparer and begin the filing process, there are a few things you should consider.

The Homework

The main reason you aren’t doing your own taxes is because you want them to be done accurately, right? That makes it imperative that you choose a qualified and reputable tax professional to handle the process. Before agreeing to work anyone, makes sure you look into their background and experience. You should know:

1. How long they’ve been in business
2. How many returns they have filed
3. What kind of training courses they’ve taken
4. How long it’s been since their training
5. How available are they to you to answer questions
6. Will they help you if your return is audited
7. If there are any complaints against them (check the Better Business Bureau)

Do some research online, ask for referrals, and make sure you feel good about the tax preparer you hire. Also, make sure you’re aware of their fees. Usually, fees will vary depending on how complex your return is. However, it should never be based on the size of your return — that’s illegal.

Be aware that there could be extra charges for optional services, such as RALs (refund anticipation loans), additional IRS submissions, electronic filing, or expedited refunds.

The Groundwork

Before you visit with your tax professional, you’ll need the right documentation. You may have to ask your employer or check your mail for 1099’s or documents from your bank. This list doesn’t include everything you might need, but it’s a good place to start:

1. Last year’s tax return
2. Copies of cancelled checks for tax deductible payments (medical and child care bills, business expenses, moving expenses, business travel and more)
3. Cancelled checks and/or receipts for tax deductible charitable donations
4. Statements or receipts for mortgage interest, real estate taxes, and business-related transportation or entertainment expenses
5. Social security information for yourself, spouse, and any dependents (physical cards will help avoid errors)
6. Any mail or tax information you’ve received during the year from the IRS
7. Your employer-issued W-2 forms detailing income and tax withholdings
8. Statements of other income, such as 1099s, or other documents from financial institutions you’ve dealt with during the year

But What If I Owe?

Another thing to remember is that if you owe taxes that year, you are still required to file, even if you can’t afford to pay now. Your accountant can help you file IRS form 9465, which requests an installment plan. These installment plans are relatively simple to obtain.

Ready to File? Not So Fast

No matter which preparer you settle on and how confident you are in their ability, you should always review your tax return to ensure it’s error-free. Even an honest mistake can cost you more or get you into hot water. Never sign off on your documentation until you are sure it’s 100% accurate, and make sure you receive a copy of every filing. With a qualified tax professional by your side, your tax burden will often be smaller, and the burden of filing can be lightened considerably.

Investments, savings accounts, bills, taxes, interest rates, inflation…these are terms that are enough to give anyone a headache. The time and energy spent on keeping afloat, much less building a portfolio, can be maddening.

Statistics on the matter don’t help things.

The average individual knows nothing about managing their financial accounts. In fact, in 2014 The Atlantic published an article claiming that only 30% of Americans could answer three basic financial questions correctly when asked. The top performing country (Germany) still only scored 53% themselves.

The Risks Of Doing Your Own Bookkeeping

Given those statistics, it isn’t a surprise that so many risks are involved in an individual maintaining their own financial accounts.

You may overlook a pending bill and pay it a week late, leading to your credit rating taking a hit as a result. Or you could have miscounted the amount in your checking when you made a purchase, and ended up with a costly bank fee.

It isn’t all risks to your credit score that you have to worry about. You may just not be getting as much back as you could be, and you would have no way of knowing. Are you making the right investments to give you the maximum return? Would you be better off with a Traditional IRA, or a Roth IRA? Is it worth buying stock, and if so, what stock?

You may be losing money, credit standing, and opportunities by managing your own finances.

Hiring A Professional

You have three options for hiring a professional to maintain your accounts.

First is a Certified Public Accountant (CPA). A CPA has done through extensive training, and holds a college degree in the accounting field. They have been licensed through the American Institute of Certified Public Accountants. This gives them a high level of authority on financial matters, including investing and planning for the future.

Next is an accountant. Someone who has been trained in accounting may or may not have a university degree. Often they will hold at least a certificate showing that they have finished some kind of financial course. While able to give advice on future planning, they are often sought more for tax and billing purposes.

Last is a bookkeeper. The average bookkeeper manages your basic financial needs, such as paying bills on time, monitoring checking accounts, reading and responding to credit card charges, and allocating a percentage monthly to savings accounts. A bookkeeper may or may not hold a certification in a financial discipline.

Hiring a professional will vary in cost based on your city, how much you make, and how much help you need. A simple bookkeeping service may cost as little as $10 per hour, while a full service CPA or accountant could cost up to $50 an hour, or more.

Good Decisions Now For Financial Stability In Your Future

Finding the right balance of professional and individual bookkeeping can have a huge impact on the stability of your future. Whatever you decide, remember that you are building a foundation for your life that may decide on everything from your status as a homeowner, to your retirement age.

Make the right choice for you and your family!

If you’re a small business owner, you may be enjoying some great tax benefits. However, you are keenly aware of the importance of proper accounting when it comes to paying taxes. One of the best ways to manage your business’ cash flow and avoid potential penalties is to pay your taxes quarterly, rather than annually.

Why Pay Quarterly?

It has been said that the only things we can rely on in life are death and taxes. When it comes to paying Uncle Sam, it just makes good business sense to divide that sum into equal amounts every three months. The last thing you want as a business owner is to be faced with a tax “emergency” where you may not have the cash flow to cover it. It may seem like a bother to pay taxes more often, but when the annual deadline looms, you’ll be glad you did. As long as you’re organized and keep accurate records, paying quarterly might be your best business move.

But I Hate Bookkeeping!

We get it. Many small business owners dread the accounting chores that are required for tax filing. That’s understandable, and it’s the reason so many simply put it off until the annual deadline, then try to play catch up. But when file quarterly, you still have a predictable schedule of deadlines – you just get to take smaller bites on the payments. If you don’t enjoy procedure (and who does?), your best bet is to hire a CPA to manage your filing and quarterly payments.

How a CPA Can Help

By consulting a CPA, you’ll have a clear understanding of whether quarterly filing is right for your situation. And with that qualified help, you can file with confidence, no matter when you do so. Just because your business is small doesn’t mean you don’t need a CPA. And contrary to popular belief, you can actually save money by hiring one. When you let a professional handle your quarterly tax filings, you can:

• Reduce your tax liability (pay less!)
• Avoid tax penalties
• Make sense of local and federal tax laws
• Alleviate stress
• Meet important deadlines
• Divide taxes into more manageable payments

What to Do Next

The best way to decide if you should be paying taxes quarterly is to talk to a qualified CPA. They can advise you on whether this schedule is financially beneficial for your type of business. Then, they can handle all paperwork that comes with filing on your ideal schedule. With a CPA’s help, you can rest assured that your taxes are taken care of while you focus on running your business.

No one likes filing their own taxes, it takes time, organization, and a great amount of knowledge to file them correctly. For this reason many people to choose to hire a CPA or a tax preparer to help them get the biggest refund possible on their filed taxes. The following tips will help you find a qualified professional to prepare your taxes for you.

How to Begin:

Anyone who has a Preparer Tax Identification Number or rather a PTIN, can prepare a tax return for a client. However, there are over 700,000 people who have obtained their PTIN through the IRS so finding the right professional for you can be difficult.

• Ask Your Friends and Family: You ask the people you trust most for advice in all aspects of your life and finding a trusted professional to do your taxes should be no different. If your friends or family have a tax preparer of CPA that they love, by all means use them.
• Make inquiries: Don’t hesitate to personally call a CPA or tax preparer and ask them questions. Make sure and get a good understanding of their specialties and qualifications. There is a big difference between filing taxes for a salaried employee with a single W-2 versus someone who owns a business. Be sure that whoever you hire is equipped to handle your taxes.
• Look Them Up: Before you hire anyone, make sure and look up their qualifications. You can verify their credentials on the IRS website or by checking the American Institute of CPAs website where they can authenticate your professional’s license.

Ask the Tough Questions:

Whoever you hire to prepare your taxes will essentially be your employee for a temporary time. Anyone who is in the business of hiring a new employee will undoubtedly ask them questions to see if they are qualified for the task. Benjamin T Koeller CPA, PLLC has prepared 23 questions that you can ask your potential new employee. The following are a few questions that can be found on his website:

1. “How much professional education do you get annually?”- The tax code as well as the interpretation of the tax code change every year, so it is important to make sure that your tax preparer is up to date on their proficiency.
2. “Who will I be interacting with?”- It is common within tax firms for professionals to collaborate on a single return, make sure you know who you will be dealing with directly.
3. “What’s your policy on returning phone calls?”- You want to be confident in how quickly they will respond to any questions or concerns you may have regarding your taxes.
4. “Why should I use you?” – If they don’t seem genuinely interested in your success, find someone who is.

What to Avoid

While there are number of things to look for in a CPA or tax preparer, there are also a few things that should be avoided.

• Contingent Fees- It is important for you to avoid any tax preparer who charges a contingent fee. This is a percentage of money based off of your tax return. As this is essentially an unknown number, it is far better for you to come to an agreed amount of money before they begin working on your taxes.
• Procrastination- Don’t wait too long to begin searching for a certified tax preparer. You don’t want to procrastinate and lose out on the more qualified professionals because they are too booked with other clients.
• Disorganization- The more organized you are with your paperwork throughout the year, the easier it will be on everyone when it comes time to file your taxes.
• Ignorance- While it’s true that a tax preparer must sign for the work they did, it is essentially your responsibility for how accurate your return is. Be sure and go over your tax preparer’s work before you sign and file your return.

Filing your taxes each year doesn’t need to be something that you dread. Find a professional that you trust to do your taxes and continue using them annually.