Starting a business in New York City can be an exciting and nerve-wracking process at the same time. There are various opportunities to grab, as well as challenges to overcome. As you begin with your startup, there are many things you might need to handle. These include product development, marketing, and financial operations. 

Among the jobs, financial management is the most difficult. Startups typically have a tight budget, which makes every little financial decision very important. Hiring a CPA early in the process will allow you to equip yourself with tax law knowledge. CPAs can take up work that would otherwise take a lot of time if done by an unprofessional. 

NYC’s tax laws are challenging to understand, especially for new entrepreneurs. Non-compliance can even result in costly mistakes that can set you back a few hundred to thousands of dollars. Consult with a CPA in NYC to help you set up your organization smoothly and ensure as few mistakes as possible.

Reasons to hire a CPA when you begin a start-up 

1. CPAs help develop financial planning from the start. 

When you begin a start-up for the first time, you are vulnerable to a number of mistakes. While some of them can be harmless, some can cost you thousands of dollars. Loss of money in a business often results from a lack of financial planning. This is where the expertise of a CPA can help. 

A CPA does not only help you develop a plan and make informed decisions but warns you about unforeseen challenges. This helps you be prepared for emergencies well in advance. 

2. CPAs help you remain compliant with state tax laws. 

New York City and New York State have a number of tax laws and regulations that govern business operations. As a start-up owner, you should not just be aware of what these are but thoroughly understand them. Start-ups are faced with local sales taxes, payroll taxes, franchise taxes, property taxes, etc. 

Start-ups should make compliance a priority from day one, as non-compliance can result in significant fines, interest charges, and legal issues. All of these factors can jeopardize your organization’s success before it can properly start. 

3. CPAs help monitor your start-up’s cash flow. 

As you must already know, as the owner of a start-up, cash flow is the lifeblood of any organization and for its successful operation. A CPA can effectively conduct financial forecasting for your business based on past data, current trends, and potential future expenses. A CPA’s predictions allow you to identify cash flow problems before they can become major issues. 

Therefore, by hiring an accountant from the start, you can make informed decisions about spending, investments, and cash reserves. 

4. CPAs can assist you with choosing the right business structure. 

Choosing the right business structure for your start-up is important for various reasons, but particularly for tax obligations. There are different business structures, including Limited Liability Companies (LLCs), S Corporations (S-Corps), and C Corporations (C-Corps). 

A C-Corp is best for those seeking investments and planning to expand, while an S-Corp is preferable for smaller businesses who want to avoid double taxation. It is best to consult with a CPA and discuss your goals with them to choose the right option. 

5. CPAs can help you in attracting investors. 

Are you planning to seek investors for your organization? There is no one better for you than a certified public accountant. Investors carefully evaluate your financial statements before deciding to invest. Hence, accurate financial reporting becomes important. 

CPAs help present your company’s data in a well-organized manner. Audited financials, such as your balance sheets and income statements, instill confidence in investors and make them more appealing to them. 

Start your start-up with confidence!

If you are nervous about establishing your own start-up, you are not alone. Being new in an industry can be nerve-wracking. Hire a CPA in NYC to gain more confidence!