Thinking of starting a new business? Apart from setting up the infrastructure and other business related factors, the most important area of concern is managing the financial processes and functions. If you are on the verge of starting a small business with limited capital, then you are obviously looking towards stretching the funds to the maximum by cost cutting and tight budgeting. Under the circumstances, if you are a person with a background in accountancy and an understanding of taxation rules then you can easily take care of this core area on your own. However, if you lack the experience and expertise in these areas, then hiring a virtual controller or a firm for providing tax and accounting services is the best way to save on added costs of hiring a full time accountant.
The importance of the services of a virtual controller or third party professionals for tax and accounting services comes in useful for the following reasons during the start up process when a number of actions are being taken to create the foundation of a successful business:
1. The determination of the business structure (Sole proprietorship, partnership, LLC or a Corporation) can be done by getting an insight into the pros and cons of each through the expert opinion of a professional expert, instead of using incomplete knowledge for the formation of the same.
2. The opinion and financial analysis of the virtual controller pertaining to the business plan goes a long way in providing a solid base for the startup.
3. The quantum of the transactions determines the accounting software that needs to be utilized by the tax and accounting services providers and virtual controllers. The advice and assistance provided on the same and the formalities required in the opening of a bank account for business purposes by the experts help the first time owners set things up the right way.
4. The hiring of tax and accounting services makes the organization remain updated with the latest revisions in regulations and statutes related to filing of tax returns and proper documents. Timely submission of compulsory financial statements and reports helps avoid penalties and legal hassles.
Apart from the generic bookkeeping processes, handling of related documents, preparation and submission of the final accounts, tax filing, etc, the firms providing tax and accounting services and the virtual controllers help in the growth and consolidation of the business over a period of time. The other ways in which they help the small business owners are discussed below:
1. Overseeing the payroll and payment services
2. Providing advice on the tax benefits and payments that should be made to the authorities across the year.
3. Helping out in the fiscal aspects of marketing and procurement strategies.
4. A virtual controller is usually a good tax consultant and his opinions help in saving the costs that could have incurred in hiring the services of a qualified professional.