18663 Ventura Blvd, Suite 227Tarzana, CA 91356
FREE CONSULTATION818-436-2775
18663 Ventura Blvd, Suite 227Tarzana, CA 91356
FREE CONSULTATION818-436-2775
Blog
Personal, Affordable Payroll Services, Bookkeeping, and Tax Processing for Small Business throughout Los Angeles County.

Being Your Own Business Accountant is Tough Work

There are a number of tasks you have to think about when running a small business. From creating marketing materials and handling clients to data entry and accounting, finding enough hours in the day to handle everything on your own can be a job in itself.

Sometimes, you may take on an assistant or a few employees to distribute the workload. Yet, if you are like many business owners, you will be your own Los Angeles business accountant and handle the bookkeeping work yourself.

Not Every Business Owner is a Good Accountant

Some business owners have the know-how to manage their accounting department, even though you may not be a number’s person. Figuring out your business finances is a lot different than trying to balance your personal checkbook. Here are just a few pitfalls you may experience if you take on the task yourself instead of hiring a qualified accountant:

Picking the Wrong Business Entity

When you start a small business, you have to decide on a business entity. Your business may be an LLC, sole proprietorship, LLP, partnership, corporation or non-profit. If the wrong one is selected, you could end up paying too much or too little federal and state taxes. You may also overlook ways to better protect your assets.

Mixing Personal and Business Finances

One of the top accounting mistakes you can make is to mix your personal finances with your business finances. By doing this, you have a harder time tracking cash flow, expenses, and debts. When you don’t hire an independent Los Angeles accountant, you miss out on the expert accounting and tax advice that can keep your accounting records accurate.

Not Deciding on the Best Time to Expand

Business orders are pouring in and sales are increasing. You may think this is the perfect time to expand operations. Yet, without the expert advice from an accountant, you may fail to properly review cash flow, financing options, inventory management, and other factors of your small business. You can end up trying to expand your operations too soon. Also, your business might not be able to handle the added expenses or risks of a slow sales period.

As a small business owner, you want all the resources and experts at your disposal to make the best decisions for your operations. At Accounting Taxes Payroll Partners, we can help you manage your finances while assisting you with growing your business. Contact us today at 818-436-2775 for more information.