A small business setup in the Durham region is no different from a small business setup anywhere else.  You really need to hit the ground running. If you want to have a more significant chance of success. It goes without saying, therefore, that simply throwing all caution to the wind and simply "winging it" just will not cut it. You need to be prepared in all aspects right from the very start and definitely not leaving it all to guesswork as you go along.

One of the most important things - if not, THE most important thing - that you have to take care of when setting up your startup business is, of course, the financial aspect of the enterprise. A lot of new entrepreneurs often assume that all they need is sufficient capital, and things will automatically fall into their rightful places. This is where they go wrong. If you have this sort of mindset, then you can be sure that no capital will ever be sufficient because there is a very good chance that it will be misspent somewhere down the line, regardless of how careful you might be. You need to have a good plan. And even beyond that, you need to have sound advice to be able to create that good plan. This is why it is extremely crucial to employ the services of a good accounting firm to put you on the right path.

Now, in an effort to cut operation expenses, a lot of business owners are often tempted to just do it themselves, instead of hiring an accounting firm. Even more business owners would argue that their ventures may be too small or too modest to warrant the services of an accounting firm. This is simply not the case. Unless, of course, you know a thing or two about taxes and finance, that is. But really, how many startup entrepreneurs can boast of such? So you should definitely think twice, if you know nothing about managing the books of the business. This is not a good area to learn as you go. An accounting firm, therefore, will provide your business with the essential support that it needs to get it off the ground and into the right path to profitability and success. Use your time and effort to more worthwhile business tasks that are well within your expertise, instead.

So why do you need to get good accounting advice before you start a a business? Let us count the ways.

1. An accounting firm can help you write a sound business plan.  This is essential in keeping your business goals realistic and professional, which in turn, means that it is more  likely to succeed. By consulting with an accounting firm during this early stage, you get the added benefit of their expertise and tools to determine financial projections and goals.

2. An accounting firm can help you determine the right legal structure for your company. Now, we all know that businesses have different legal structures. A business can be a sole proprietorship, a limited liability partnership, a corporation, and many more. This can get quite confusing for most novices.  However, an accounting firm will be able to advise you accordingly on what legal structure is best for your new business. No only that, you can also get good advice on the kind of liabilities that you can expect for each one, so you will know exactly what to expect with whichever way you choose to go. 

3. An accounting firm can help you create an accounting system that fits your company's needs. There are numerous financial reports and what-nots that will be required of you by the government. This underscores the need for an organized accounting system that you can use to stay on top of your obligations. An accounting firm will be able to help you design a system that will work for you and your business. This would even include advice on the best accounting software that you might need and can use with ease.

4. An accounting firm can help you comply with government and tax regulations. If you know nothing about accounting but are completely adamant about doing it all yourself, then this alone will probably change your mind.  The fact of the matter is nothing is more tedious than dealing with the government, especially when you are running a business. There are so many regulations, requirements, and payments that you need to comply with, and these could all become overwhelming. A good accounting firm will, indeed, come in handy because they already know everything there is to know about this arena - from registering the businesses to complying with your obligations. With an accounting firm behind you, you will be able to send out the right forms to the right people at the right times. You will also be able to pay the correct types of taxes at their correct amounts at the correct times. With all the hardship that the government is likely to send your way if you deviate from their regulations in any way, getting help will definitely ease a lot of your worry and headache.

5. An accounting firm can help you with your overall finances. If you do small business accounting on your own on top of all the things that you need to do to run your business, chances are you will eventually become overwhelmed. You might end up losing track of your payables and collectibles, mix up your personal and business expenses, and many more. A good accounting firm will prevent this, and even put you right back on track, if you ever lose your way. Not only that, they can also provide great advice on key business metrics, such as employee salaries in relation to total revenue, as well as help you understand your financial statements a lot better.

In a nutshell, having a good accounting firm supporting your endeavor will ensure that your business runs smoothly, finances-wise. You cannot put a prices on that kind of convenience and peace-of-mind.