If youíre employed by one company and receive a regular paycheck, filing a tax return is a fairly simple process. However, once you own a business, hiring an accountant might be a wise move, says StartupJournal.com, The Wall Street Journalís guide for entrepreneurs.
ìMany entrepreneurs prefer to focus on their core business, rather than keeping abreast of tax law changes, preparing payroll and invoicing clients,î says Tony Lee, publisher, StartupJournal.com.
Choosing the right accountant is very important, especially if you will be seeking feedback on business ideasósuch as possible expansion opportunities. As your closest business confidante, an accountant canóboth directly and indirectlyódrastically influence the success of a business. When choosing an accountant, you can decide between independents and local offices of the Big Four (PricewaterhouseCoopers, Ernst & Young LLP, Deloitte & Touche LLP and KPMG International.)
The general criteria to consider are the amount of service youíll receive, the fees involved, and the accountantís general philosophy and approach.
StartupJournal.com offers the following advice when choosing an accountant:
- Determine what services youíll need (federal-tax preparation, filing monthly local and state taxes, payroll, etc.).
- Ask who youíll be working withóhiring a big firm doesnít necessarily mean youíll be working with the most experienced people.
- Inquire about feesóhourly rates can range from $150 to $300 an hour for a larger firm, and between $75 and $100 an hour for a smaller one.
- Find a firm with your general philosophy and approachóthey should be as aggressive as you are about tax strategies.
- Obtain recommendations and work with someone you trust.
For more information and guidance on starting and running a new business, visit:
Startupjournal says that small business tax matters best left to accountants
If youíre employed by one company and receive a regular paycheck, filing a tax return is a fairly simple process
