Accounting Services: Before, During, and After Business FormationInk Well Mag December 22, 2015 0 COMMENTS
There’s a need for accounting services for efficient business operations. Accounting aids in providing financial insights and security for stakeholders, as well as in complying with legal obligations. Accounting firms also prove beneficial during the early stage of business formation.
Before and During Business Formation
Every business must be registered for its legal identity. In Utah, businesses register with the Department of Commerce.
Each type of business, whether it’s a sole proprietorship or a corporation, has distinct taxation requirements. Consulting certified public accountants can help business owners understand those rules, and determine the pros and cons related to their decisions.
Accountants with more experience in this aspect can provide accurate information and advice on meeting the unique requirements and procedures each Utah city implements.
During the business formation, the services of accounting firms will also come handy. Business applicants need to apply for certain tax licenses with the State Tax Commission, along with other business formation requirements. They also have to get their federal Employer Identification Number at the IRS office.
After Business Formation
Most importantly, Csaccounting.com says accounting firms assist businesses in systematic record keeping, tax accounting, and inventory. Owners use the information gleaned from these data for business planning. They rely on these professionals’ counsel in making achievable goals.
Having an organized business record is also a requirement for preparing an accurate and complete tax return – a business requirement that accounting firms specialize in. A record is marked adequate if the current income showed on the report is based on an annual accounting period.
According to Utah State Tax Commission, small businesses may need to present checkbooks and summary records of cash receipts, check disbursements, and depreciation and employee compensation.
All receipts, invoices, and canceled checks should also be kept as proof for claiming tax deductions. According to the law, businesses should keep documents that support an item on a return file for three years since its filing, or two years after paying the tax.
Given the important roles that accounting firms do before, during, and after formation of a company, it’s no wonder they also handle business registration services.