A CPA Can Help a New Business Take Flight

New business must often succeed through bootstrapping, and that’s a fine line to walk. A CPA is an additional expense, but he or she is also the person best suited to help you navigate it.

How a CPA Can Help a Startup Succeed

The unfavorable statistics regarding new small businesses are well known, but those numbers don’t imply that those startups we’re doomed to failure. On the contrary, many startups fail due to mismanagement of the books, and that’s a series of mistakes that many Las Vegas accounting firms can help you avoid.

The Business Plan

Startups often operate with limited resources, which is the nature of the beast. However, many failed small business could’ve had access to more resources with an appropriate business plan. Such a plan can provide at least two important benefits: a loan or a larger loan from a bank or other financial institution and a methodical approach to allocating funds in the initial phase.

Managing Business Expenses

Another common misstep with small businesses is the mismanagement of expenses. A business has to spend money in order to make money, but there must be a balance between investment and return. A CPA can implement an accounting system and manage it so that the startup uses its available resources in the most productive manner possible.

Limiting Liabilities

Some liabilities are the purview of the insurance companies but most have to do with government regulations and taxation. A CPA firm can reveal hidden financial liabilities, discuss the obvious ones and assist you in creating a plan to deal with them in a manner that minimizes disruption to the business.

Navigating Growth Stages

Many startups that fail do so as they enter their first growth stages. A business can never remain stagnant, and it must use each growth stage to improve or at the very least secure its bottom line. CPAs can help manage the many different aspect of a growth stage, including cash flow, inventory, financial forecasts, budgets, audits and so on.