Small Business Accounting: A Dilemma During Startup Operations Small businesses often want to save costs by not hiring professional accountants when they initially begin their operations. They purchase the latest accounting software, with small business accounting methodologies, and do their own accounting by tracking sales and expenses. When things get complicated, when you need to pay taxes and prepare financial statements for the loan, only then will they realize that they need professional help with these requirements. At this point, they start thinking about hiring a professional accountant to give them good advice. But how do you look for a valid one? If you want someone who can advise you on tax matters, business organization, financial report preparation, and payroll tax returns: You need a Certified Public Accountant (CPA) or Enrolled Agent (EA), who is a licensed tax expert. Routine accounting work that covers paying bills, recording daily transactions, issuing statements to clients, can be done by an accountant or by you, if you have a basic understanding of accounting terms and terminology. A good accountant for you, is someone who has extensive experience in your business sector and the necessary expertise in the accounting profession. This is someone who understands the complexities of the industry and can help you not only with the books, but also in making strategic business decisions. This would include: making and purchasing decisions, investment strategies, product development and computerization, among others, to keep your company competitive in the market. Starting up without professional help can be more expensive in...... middle of paper ......effect on the small business healthcare tax credit and employer reporting requirements of work. These reports indicate the cost of coverage and employer-sponsored health plans. Other changes would include revisions to the net investment income tax, the Medicare tax and insurers' health coverage. Tax implications and changes in current and future regulations would be best understood by accountants experienced in this field. Professional accountants would also be best placed to advise you on the right accounting software for your business. You can discuss with him the type of software best suited to the type of operations you carry out. As someone who is up-to-date on his profession, he is the best person to advise you on changes in accounting practices that could directly impact your specific line of business.