If you are in business, your goal should be to grow. In fact, you’ll find that a lack of growth will result in a short stay in the business world. Putting in the necessary hard work to get a business off the ground isn’t easy. In most cases, that hard work is rewarded, and that reward is experienced through this wonderful word, growth. Growth happens when your year over year revenue increases. Another form of growth is when more employees are hired for the business. Growth can also be experienced when your business gets better and better at meeting the needs of its target customer. Growth is beautiful, but anyone who has experienced it knows that the good feelings and celebrations aren’t isolated from its growing pains. Sometimes growth is a steady, gradual result. Over time, things start to happen and the changes and new experiences can be managed without too much disruption. Other times, growth can be rapid! Rapid growth is exciting because it exceeds expectations and creates new opportunities and possibilities that may not have even been imagined. Whether the growth you are experiencing in your business is steady or rapid, you’ll soon find out that you can’t face these challenges alone. Whether you are able to project growth in the future, or you realize it’s happening in the moment, we strongly suggest hiring a tax preparing accountant to help you handle these new opportunities. We are going to point out a few of these ‘new opportunities’ for people who aren’t as familiar with taxes or accounting. A tax preparing accountant will help you with managing the growing pains of these 4 new opportunities.
You’ve probably heard successful people explain how once they started making money and taking off in their career, people started looking at them differently. Money will naturally change the way we look at things. Keep in mind, not only will your friends and family look at you differently, but the state and federal government will look at you differently as well. The taxes you pay are determined by your income, and when you make more money, you end up sliding up the tax bracket. If you and your business grow in a tax year, you may find yourself in one tax bracket to start the year, but now post business growth, you find yourself in a higher tax bracket the following year.
‘New levels, new devils’ is an anonymous quote that captures what we’re talking about. When you reach a new height in your business, you experience a new set of challenges that you haven’t had to worry about until now. When you enter into a new tax bracket, the rules are different from lower tax brackets. If you have done your taxes the same way prior to a rapid growth year, you won’t be able to know all the new rules to the new game you’re playing, unless you spend excessive amounts of time on researching and consulting. Instead of doing that, why don’t you hire a tax preparing accountant like Perfect Balance LLC who knows the rules for every tax bracket.
Maybe your business started as a local shop, but then the demand for your business goods shot through the roof, and you started realizing the need to expand. Growth outside your business’s original location can look like taking your business into different states. As your business grows in different states, your business will have to comply with the states rules and regulations. That will require filing a number of different forms and keeping them organized. Sounds like a lot of stress and a lot of extra work that will take you away from the high impact business activity requiring your attention. Sounds like the perfect time to hire a tax preparing accountant.
All of what has been mentioned can be summarized in knowing that growth is bound to change priorities. There may have been a time where keeping track of the books and counting every penny was a high priority for you as the business owner. But now, the demand for the product or service you provide has increased, you have more employees to manage, and you have to make some crucial decisions to maintain this growth. Your role as the business’s accountant is making it difficult to execute these other important tasks. New growth means new priorities, and instead of carrying the weight of all details required with preparing your taxes, let the experts at Perfect Balance LLC take care of it for you. Whether it is budgeting, cash flow management, payroll, or assessments, Perfect Balance LLC is your partner in helping you take care of the new opportunities that present themselves with growth. We love seeing our clients successes, and even more, we love helping them to continue building that success. If you need to hire a tax preparing accountant, contact Perfect Balance LLC.