When you’re starting a new business, sometimes the things you don’t know really can hurt you. Expensive mistakes can be made at this stage that could easily have been avoided with the guidance of an experienced CPA.
Mistakes that can cost tens of thousands of dollars to fix.
It’s crucial to engage your CPA during the pre-revenue phase. Not only to sidestep costly pitfalls, but to give your fledgling business the foundation it needs to succeed.
Business plan development
While a CPA won’t map out your overarching business strategy, their input is invaluable for refining financial projections and setting up a realistic budget. A CPA can also advise you on funding strategy and options, and then prepare the necessary documents to move forward with investors and lenders.
Set up robust accounting systems
Bookkeeping and financial tracking begins long before your business starts bringing in revenue. Your accountant can show you how to track expenses and manage cash flow most effectively, and the better your books, the clearer your financial picture.
Get a head start on tax planning and compliance
The best time to implement tax planning is before you start earning money. CPAs help pre-revenue companies develop smart tax strategies that minimize liabilities and take advantage of available credits and deductions.
Your CPA will also ensure your business complies with all relevant local, state, and federal tax regulations to avoid penalties, and keep you up to speed on changes in the tax code.
Track financial health from day one
By preparing and analyzing your financial statements, your CPA will deliver insights into the company’s current financial health for better decision making and more accurate tracking moving forward. Monitoring the growth of your business and comparing results to your goals becomes easier if you identify key performance indicators (KPIs) as early as possible.
An experienced CPA can provide insights and benchmarks from similar companies or industries for improved tracking and informed decision-making.
Risk management
CPAs have helped countless business owners take their enterprise from concept to profit. This real-world experience helps them identify potential financial risks in your business plan and to make educated recommendations for strategies to mitigate them.
It’s not just what you know but who you know
Successful CPAs tend to have working relationships with other professional service providers who are good at what they do, too. Engaging a CPA early lets you tap into their connections and resources. Why do your own networking when you can leverage your CPAs professional circle to connect with potential investors, advisors, and other key resources?
Advisory services
Advanced Financial Planning & Analysis (FP&A) delivers invaluable strategic advice for a long list of financial matters, including budgeting, forecasting, and investment strategy. It’s never too early to start financial planning.
Build a strong foundation for your pre-revenue venture
Ready to start your pre-revenue business off on the right foot? Let’s talk about your project and see how our team can help you navigate the complexities of starting and growing a business.
