1. Launch a Start Up

We harp on this a lot, but it’s extremely important to work with a tech accountant from the very beginning of your business. 

Starting a tech company is exciting, but it takes a lot more than a good idea to become successful.

At the beginning of your launch, a tech accountant can help you structure your business in the most profitable way, build forecasting models for revenue, identify start up and operating costs, and organize your books for investors and lenders.

2. Set Up Your Business Entity

One of the most jobs that a tech accountant does is structure your business in the most tax efficient way.

Setting up your startup as the wrong business entity (S Corporation, Partnership, Corporation, etc.) can cost you thousands, if not hundreds of thousands, in lost funds.

A tech accountant can help you structure your business in a way that puts more money in your pocket, and take advantage of huge tax breaks like Qualified Small Business Stock (QSBS) in preparation of exit.

3. Prepare & File Taxes

Running a business comes with a large tax liability. Depending on the state reside, you will owe a hefty percentage of your income every quarter to the IRS.

A tech accountant can help you reduce your tax burden by helping you take advantage of large tax credits, such as the $250,000 R&D Tax Credit and immediate operating business deductions. 

4. Fix Your Cash Flow

Many profitable businesses fail because they run out of money at the wrong time and can’t afford to pay suppliers or staff.

Even a highly active business won’t last long if payments are slow to come in, or expenditure is too high.

A tech accountant can help you predict the effect of revenue, payroll, and other expenses on cash flow, and come up with strategies to manage the situation.

5. Set Your Budget

Following on from the last point, it’s imperative to operate within a financial budget in order to reach profitability.

A tech accountant can help you create a rigorous, accurate budget that will give you confidence in your spending and decision-making.

You’ll know how much you have to pay yourself, your employees, and how much you can invest in growth.

Additionally, a good tech accountant will monitor your forecasted spending & income vs. actual, and help you stay the course throughout the year.

6. Set Up Accounting Processes

A good tech accountant will set up many of your accounting processes for you. 

From automated bookkeeping, monthly invoicing, receipt uploads, and payroll processes, tech accountants can help you put more efficient processes in place and take the most time-consuming tasks off your hands completely.

7. Prepare for Exit

One of the most important things you can do as an entrepreneur is plan for a successful exit while you are growing your business.

Every plan, every decision, every milestone should be backed by the idea that you will one day pass on the business – either to an employee or an interested investor.

Through capital gains tax breaks and other advanced tax strategies, a tech accountant can help you structure your business in a way that will help you get the most profit possible – whether you sell for a profit or close with a loss.

When Is It Time To Work With a Tech Accountant?

The best time to work with a tech accountant was yesterday.

The next best time is now.

Working with an experienced tech accountant can save you thousands, if not hundreds of thousands of dollars in the long run through advanced tax strategy, efficient business structure, cash flow management, accurate forecasting, and more.

In fact, the success of your business could depend on it!

If you haven’t found a tech accountant you’re happy with, feel free to schedule a complimentary 15-minute appointment with our tech accountants anytime. 

We’re here to help.