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Starting A Second Business

If you’re starting a second business, then you know everything that’s involved with launching a new venture. However, there are a few business basics that every entrepreneur should revisit with their CPA/accountant before diving into another enterprise. Consider these planning basics:

 

 ·         Determine the proper legal structure—Will you set up a limited liability company (LLC) or a corporation, or just a simple DBA? It’s important to determine the best option for your new venture, especially when it comes to reducing liability and keeping your personal assets protected.

 

 ·         Create revenue and expense budgets—Sitting down with an accounting professional who asks you questions about your draft budgets will help you determine what you are missing or miscalculating.

 

 ·         Set up a proper accounting system—Often this is the most neglected part of forming a business and you are probably aware of the pitfalls here. With your first business you likely bought QuickBooks and tried to go it alone. Sure you paid the bills and recorded the income, but the accounting became a mess. The state of your accounting program likely could not provide you with the financial data necessary to help you properly manage your business. Imagine receiving timely financial reports and key performance indicators that help you determine how to improve your profits. With BOSS, our firm’s back office support system, we help businesses set up an effective accounting process with training or you can have us assume partial or full outsourced responsibility for your back office function.

 

 ·         Define your staffing needs—Will you use employees or contractors? What about benefits offered and pay structure? How will you pay yourself? What will your organizational structure look like? Discussing this investment in human capital with your accountant will help alleviate common frustrations when businesses are in their start-up phase. Our BOSS service includes a seamless payroll processing service.

 

 ·         Plan your tax strategy—Not only will you have to set up compliance systems for the collection and submission of sales and use taxes, excise taxes, etc., depending on your type of business, you will also need to plan for your income tax liability as well. Perhaps you got an unexpected tax bill when you filed your income tax return for your first business. Avoid those surprises by planning up front with your tax advisor.

 

There are certainly other aspects of a business plan that should be considered as well, such as marketing and financing options. Reviewing onsite or cloud-based software applications is important to make your processes more efficient. Proper security of your data is of critical importance. If any of these areas are of current concern to you with your newly contemplated or present business, please reach out to our firm. We are here to advise you.

 

Please enjoy the abundant harvest and remaining part of our colorful fall season!