Many companies that are just getting started, whether they are investor funded or bootstrapping it, might not recognize the various accounting needs that a startup has. We specialize in the tax and business consultation of new companies. Our accountants have worked with many small business startups with varied needs and we’ve seen most of the of the pitfalls that new companies fall into. Working with a small business accounting firm like Profitwise Accounting, regardless of your size, is always a good idea. We love working for startups, helping them with the various financial challenges inherent to their enterprise. Here’s some examples of the types of companies that we work with and the common problems they face.
Mistake 1: Not Considering the Tax Implications
We see many, many mistakes that startups make here in the California area. Many companies that operate out of San Diego do business out of state, which causes all sorts of legal and tax problems.
You’d think that if you have an attorney that this would solve the problem. But we see many companies make big accounting mistakes because their advisers don’t fully understand the tax laws.
Maximizing your financial profits in the first few years of doing business is critical. Many companies think they can’t afford an accountant. But when they work with Profitwise Accounting they find out that the savings is far more than than the output.
See our full article on why meeting with a tax accountant should be one of your first conversations when starting a small business!
Mistake 2: Working with a Tax Return Adviser rather than working with a Specialist in Small Business Accounting