Choosing The Right Investment During High Inflation

Choosing The Right Investment During High Inflation

Choosing the right investment type and strategy

Do you want to know more about choosing the right investment during high inflation? There are numerous types of investments an individual can make however not all investments are created equally. Some investment plans carry a lot of risks but reap greater rewards, and there are safer investment options that generate lower returns.

Investing 101

Risk

Choosing the right investment bears a lot of risk. What you invest in is completely up to you, however, your portfolio should at least reflect your risk tolerance. Understanding your risk profile from the get-go will help you better plan the right types of investments for you – this can be considered rule number 1.

Affordability

It’s massively important to know how much you can afford to invest over a certain time frame, whether that be weekly, monthly, or yearly spending. It is vital to work out costs and understand exactly what you can afford.

Timelines & goals

Break down when you would like to achieve certain goals and stick to a plan when you are choosing the right investment during high inflation. Breaking down a business plan into bitesize, manageable pieces will help you better achieve your goals whilst giving much-needed motivation to achieve more. Setting goals and using timelines help to paint a clearer picture and help to reduce stress.

Professional help

Consulting with professionals is a good place to start when setting up a business or seeking to invest. Outside help from companies that offer such services will consult with you on your goals, when you want to achieve them, and the purpose for investing, such as aiming to retire, saving up for a new house, or looking at expanding a property portfolio. 

Some of the most common investment types are as follows.

High-interest savings account

This is one of the safest ways to invest your money because there is no volatility. By placing your money in a HISA, you’re earning annual interest on your deposited monies. A typical savings account offers little to no interest at all circa 0.1% while a HISA will generate around 1.3%.

These aren’t mind-blowing numbers, yet they are a safe bet, and you are guaranteed the deposited amount plus at least 1.3%* in interest. Based on 1.3%, $10,000 in deposits would generate $130 in annual interest.

CD Investments

The second safest investment to invest in are CDs. CDs provide a higher interest rate than a savings account, once cash is deposited you can’t touch the principal or interest until maturity. 

CDs are offered at 1-year, 3-year, and 5-year rates. Each bank will provide different terms. 

Real estate 

This investment requires a lot of capital but is a very worthwhile investment and extremely popular. Flipping property and renting property are the two most common types of real estate investing.

Real estate investing carries 2 main benefits:

  1. Earning passive income every month
  2. Your tenants pay off your house for you

Rental investing is complex and requires proper research. Outside consultants can help you better understand laws, taxes, and risks – so outside help is always advised.

real estate outlook 2022

Stock

Stocks can carry risk and is a more ‘hands-on’ investment that requires monitoring and analysis of a company’s performance. If a company wants to generate some quick cash, it can sell stocks to investors to generate liquidity.

When a shareholder purchases a stock, they’re entitled to a portion of the company’s earnings. Shares of stocks depend on the company’s performance and its projected future earnings. Stocks require a lot of research and could be considered a better option for more experienced investors.

Index Funds

These funds can provide high returns and diversified portfolios that mirror the movements of such index. These can be less risky than just investing in one single stock. According to MSN, the best index funds for 2022 are:

1-Vanguard 500 Index Fund Admiral Shares-Return 13.62, mirrors the performance of the S&P 500.

2-Fidelity Nasdaq Composite Index Fund- average return 16.21%

3- Fidelity 500 Index Fund: Return 13.65%, investments the majority in S&P 500.1

Index funds we found appealing to invest in: 

1-Vanguard Total Stock Market: Return 17.99%, well-diversified portfolio, mirrors the performance of the S&P 500.

2-Vanguard Growth Index: Return 24.58, a lot risker, portfolio of large-cap U.S. stocks

3-Vanguard Total Bond Market: Return 9.25%

How does inflation affect investments?

Currently, we are experiencing high inflation, so how can this affect our decision? Inflation in theory affects the value of our purchasing power as consumers. Then to mitigate the inflation factor, a higher interest rate is needed to deliver higher returns and capital growth. 

  • A savings account does not provide an interest rate that is high enough to offset the inflation factor. 
  • A CD does not offer a high-interest rate to mitigate the inflation factor unless the inflation is less than 3%, Which in this case the benefit of the investment will be offset by the inflation factor. 
  • Inflation increases the value of real estate assets. 
  • Stocks may fluctuate depending if the companies are in the cyclical or noncyclical industries. 
  • Index Funds can offset some of the inflation, as these are well-diversified portfolios of stocks. 

So what now?

Startup Tandem advises you to assess your personal risk, and financial health before investing. Do the research needed to make a proper decision. Making an account with a broker or consulting with a financial advisor can help you achieve your long-term financial goals. This type of individual can help you invest your money in a certain investment that can provide you with extra income for day-to-day activities. 

Startup Tandem does not provide financial advice to individuals on personal investments. Brokers can give you crucial advice on the right sort of investments to suit your financial position and investment goals.

What does this mean for small businesses?

Small business owners should try to maintain healthy cash balances to navigate the current market conditions. As interest rates continue to rise, the cost to borrow will increase making it challenging for small business to meet their lending terms. This also means being smart at placing purchase orders for equipment, inventory, or any other materials. 

Startup Tandem can help you create a short-term strategy for businesses to navigate the uncertainty of the current market conditions and reassess periodically. Now is the time to ask for help, if your business is suffering.

This article is solely for educational purposes. Nothing in this article is meant to persuade or advise anyone on what to do with their money. Please consult with an experienced broker or financial advisor before making any decision. 

Sources:

1- Barbara Friedberg. May 23, 2022. “9 Best Index Funds for 2022” Retrieved on 8/1/2022. 

 9 Best Index Funds for 2022 (msn.com)

Celcius – The Great Demise

Celcius – The Great Demise

Celcius seems to have overtaken Terra (luna) as the most talked about crypto disaster.

On June 13th of this year, as crypto markets tumbled, Celsius did the unthinkable and paused all withdrawals, swaps, and transfers on their platform. Essentially locking users out of access to their funds ”acting in the interest’’ of their community. Far from trusting behavior from one of the largest crypto lenders in the space.

But what is Celcius?

Celsius Network is a centralized finance lending and borrowing platform founded in 2017. Users can deposit crypto assets onto the platform and can earn generous interest rates in return, up to 15-18% every year with 80% of celsius earnings going back to their user base. 

Celsius uses crypto deposits to generate profits by loaning them out to other institutions at a higher interest rate, a similar model to a traditional banking system. Any of its 1.7 million users could purchase the Celcius token (CEL), giving holders guaranteed higher rates and lower costs. Sounds perfect, right?

Where did it all go wrong?

In theory, the banking model works but what Celcius didn’t account for is the volatility in the crypto market. When BTC and ETH suffered a pounding back in June, Celsius’ asset value fell by 50% from $24bn down to $12bn. This left the platform facing a liquidity crisis, meaning that if all investors chose to withdraw at the same time, they would not be able to fulfill demand – forcing a suspension of user funds.

What’s happening now?

Things have gone from bad to worse for Celsius members in the last few days with the platform filing for Bankruptcy on the 13th of July, casting further uncertainty over investors looking to recoup their funds.

Celsius said in a press release that the reason for the filing was “to provide the Company with the opportunity to stabilize its business and consummate a comprehensive restructuring transaction that maximizes value for all stakeholders.” 1.

In a nutshell, this means that Celcius doesn’t have the capital to cover its debts and is looking for a way forward to survive.

Will investors get their money back?

Not any time soon, unfortunately. There will be a long line of creditors looking to get their funds back and depositors on the platform will have to join that queue. Many commentators think that the wait for a refund may take years.

Crypto and inflation

In times of economic downturn, consumers go out in droves to find an asset to hedge against inflation. 

Typically we would consider precious metals such as gold and silver as a safe bet in the markets. Cryptocurrencies have often been referred to as “inflation-proof” but with what we have seen recently, is anything truly safe from inflation? 

There isn’t much doubt between speculators that BTC and ETH will bounce back, but when platforms do fail, does this help or hinder larger platforms in building trust with skeptics?.. 

Only time will tell.

References

1. Celsius. (2022, July 13) Celsius Network Initiates Financial Restructuring to Stabilize Business and Maximize Value for All Stakeholders. [press release] 

https://finance.yahoo.com/news/celsius-network-initiates-financial-restructuring-001400688.html” 

Importance Of Consumer Sentiment And Confidence

Importance Of Consumer Sentiment And Confidence

Why consumer Sentiment and Confidence is Important in the Economy

 Consumer Sentiment- What is it? 

Statistical measurements of the overall economic health that has been determined by consumers. That is what consumer sentiment is. Keep in mind that this will also take how people feel into account. This means that how people feel towards how they are doing financially matters. It will also take the short-term health of the current state of the economy and what is prospected in the long-term for growth. Plus, this is used to be one of the best and most-useful indicators for the economy. 

PRO TIP: Visit our site to learn more about important topics related to consumer sentiment and confidence.

Consumer Sentiment- How to Measure It

Consumer Confidence Index or CCI and Michigan Consumer Sentiment Index or MCSI are two of the key measures that will want to know and express how the consumer is feeling about their purchase plans for the future and how they feel about the economy as a whole. 

Sentiment Indexes- What are They? 

These are the indicators that will help measure the many changes in the future of the economy. These indexes are based on how well an investor and consumer feel about purchasing items. Their interest and willingness to do this will be considered. Before indexes are made, many consumers are interviewed beforehand. 

PRO TIP: Read this blog post to learn more about the 2022 real estate outlook.

Consumer Confidence Versus Consumer Sentiment 

Both of these are simply surveys. They are two short surveys for two months. They will be from various sources. However, both are going to judge the confidence that Americans have. This will be judging what Americans feel about their financial security, status, and expectations. They are wanting to know how they feel about the future, good and bad concerns. This is how they determine how confident people are spending money on purchases in the near future. 

Why Consumer Confidence is Important for the Economy Indication

Consumer Confidence Index will happen once a month. There are about fifty questions, give or take. These questions will track many aspects of the attitudes of customers towards the future of the business. It will also track how consumers feel about the current and future conditions of employees as well as the income for families in the next few months. 

When the economy expands, consumer’s confidence will rise. When the economy decreases, people will start to contract. Keep in mind that the consumer information may not be perfect. This will cause the measure to become what is known as a lagging indicator for the performance of the stock market. 

How to Approach/React to Uncertainty in the Economic Condition 

 Data and research have shown that people will react based on their emotions before they think reasonably. This is going to be certainly true for those who are worried about the investments that have been made and how the economy is going to look in the future. In the long run these fear-based decisions usually do not end in the favor of the investor. 

You should seek advice from professionals before investing if you are concerned about any aspect of it. They will help you understand the state of the current economy and help you understand what the future looks like. They can help with both pros and cons of investing with a certain stock. This can help you assess what your risk and potential losses could be. 

PRO TIP: Check out our service packages here. You can also read our blog post to learn if your startup needs a bookkeeper.

Consumer Confidence Index Chart:

The chart has allowed us to conclude that the consumer sentiment is in fact, an important part to consider when monitoring because it can impact the economy heavily. June 2021 was the highest index since 2020. This was because people would start to travel again because the restrictions due to Covid were being lifted in many areas. This is what is called a post-pandemic situation. It allows the consume to feel better about the economy and the future of the economy. This is due to the positive outlook that is currently happening causing them happiness and to be emotional. Increased emotion could cause increased confidence. In return, this leads to more spending within the economy and activities. 

Real Estate Outlook 2022

Real Estate Outlook 2022

2022 Real Estate Outlook 

 

 

Here we will go over the 2022 real estate outlook. Read along to learn some important information that can help you with your next real estate investing venture and financial planning. You can find similar articles on the Startup Tandem blog!

 

 

real estate outlook 2022

 

 

Real Estate Investing- What is it? 

 

 

Before we get into detail, you must know that real estate can fall into several diverse categories. This can include commercial, industrial, or residential properties. Investing in real estate will involve purchasing, managing, or selling/renting your real estate to gain profit. 

 

 

A subspeciality of real estate investing, also known as real estate development, is the improvement of a property. This is usually done with real estate that has already been rented to improve the property for a better financial gain. 

 

 

If you do not want to personally manage or own a property, you can be part of what is known as passive investments. You can invest in real estate without having to do anything with the property. To do this you will want to invest in REITs or real estate investment trusts. Another way to do this is to invest in items such as crowdfunding. It will allow you to be part of the investment without having to commit your entire bank or manage the property.

 

 

PRO TIP: Learn which startups are the most profitable in this post! 

 

 

What to Take Away in 2022 

 

 

Despite the many setbacks that occurred during the pandemic, the outlook for the real estate investing was positive at the beginning of the year. However, mortgage interest rates became extremely high in 2022. In fact, between January and May it rose over two percent. 

 

 

As of June first, of 2022, the average rate of a fixed 30-year mortgage was 5.42 percent. The APR would be 5.43 percent. With that said, it is predicted by the end of 2022, the rate could be anywhere between four and a half percent and seven percent. For those who are on a 15-year mortgage the rates are expected to be between four and six percent.

 

 

Why are Mortgage Rates Rising? 

 

 

Inflation is currently over eight percent and that is causing the mortgage rates to rise. The Federal Reserve’s federal funds rate has increased. This rate is expected to keep hiking higher throughout the year. 

 

 

The globe is unpredictable. This is directly related to the war happening in Ukraine and the stock markets. The stock market is as unpredictable as it can be right now. 

 

 

Mortgage rates will raise at least another five times this year. This is simply due to the inflation happening across the country and world. 

 

 

When to Expect Rates to Stop Rising 

 

 

It is not looking good for mortgage rates in the next few years. It is expected that the mortgage rates are going to continue their upwards climb through the next years. However, when inflation slows down, the mortgage rates will not be rising as fast as they have been. 

 

 

PRO TIP: Learn what type of business to start in this post here!

 

 

Some of the best places to purchase real estate in 2022 are the following areas. 

 

 

  1. Tennessee
    1. Nashville 
  2. North Carolina
    1. Raleigh
    2. Durham 
  3. Arizona 
    1. Phoenix 
  4. Texas 
    1. Austin 
    2. Dallas 
    3. Fort Worth
  5. Florida 
    1. Tampa 
    2. St. Petersburg 
  6. North Carolina 
    1. Charlotte 
  7. Georgia 
    1. Atlanta

 

 

Wrapping Up : 2022 Real Estate Outlook

 

 

Based on what has been stated as facts and what is projected, the mortgage rates are going to continue to rise. This also means that real estate investors are going to be extra cautious before investing. Many investors are going to opt in for REITs. This will allow them to invest without having to own or manage an entire property. They can invest and make money without having to do as much work and spend as much money. This means that if it fails, there is less money lost. This helps reduce the risk of losing money.

 

How To Find The Best CFO Consulting Firm In Los Angeles

How To Find The Best CFO Consulting Firm In Los Angeles

How To Find The Best CFO Consulting Firm In Los Angeles

If you’re on this page, you are probably wondering how to find the best CFO consulting firm in Los Angeles. Perhaps you are a small business owner who wants to take your startup to the next level. Or maybe you are just collecting information to learn more on the subject.

Whatever your situation, we are here to walk you through the process of finding a CFO consulting firm to suite you needs. In addition, you can read our other blog post and learn how to hire a good CFO. We know that one will also be a big help.

Guide To Finding The Best LA CFO Consulting Firm

If you are a business owner in Los Angeles, chances are you have been feeling the pressure to find a top-notch CFO consulting firm. The truth is, finding the right firm for your business can be difficult. There are so many firms to choose from, and all of them claim to be the best. Not only that, can they compete with an in-house CFO? How can you possibly determine which one is right for you and if the timing is right? For example, when is the best time to hire a CFO? In this blog post, we will provide some tips on how to find the best CFO consulting firm in Los Angeles.

PRO TIP: Read this great article on how to choose a part-time CFO! We know it will be a great resource and help you choose the best CFO consulting firm in Los Angeles.

Choosing A Chief Financial Officer – Things To Consider

CFO: in-house vs. outsourced

When you hear “CFO” you may be thinking of The chief financial officer (CFO) who is the head of the finance department in a company and is responsible for all financial planning and management. In addition, you may also be thinking of a fractional CFO that is outsourced and works on a part-time basis.

The CFO reports directly to the CEO and is often considered one of the most important members of executive management. In large corporations, the CFO may be responsible for managing a team of financial analysts and accountants. The CFO is responsible for developing and implementing financial strategy, overseeing financial operations, managing risk, and ensuring compliance with regulations. The CFO also plays a key role in producing financial reports and guiding investment decisions. To be successful, a CFO must have strong analytical skills, experience in financial management, and the ability to think strategically.

When it comes to financial management, businesses have a few different options. They can hire one of these in-house chief financial officers (CFO), or they can outsource their accounting and finance needs to a CFO firm. There are pros and cons to both approaches, but there are a few reasons why choosing a CFO firm may be the best option for your business. The main reason being CFO firms have a team of financial experts who can provide comprehensive support. This way, you won’t have to worry about finding the right person for the job – the firm will handle all of the hiring and training for you.

how to choose the best CFO consulting firm
how to choose the best CFO consulting firm

Budgeting Needs

Choosing an LA chief financial officer is an important tasks. One of the things you should consider are your budgeting requirements as a business and what stage you are at financially.

A more established business that already has a large amount of capital can afford an in-house CFO. However, many startups choose fractional CFOs instead of their full time counterparts. This enables them to transition into capitalizing on the many benefits of hiring a chief financial officer without the large financial investment in having to do so.

It is also important to state that Los Angeles CFOs do have extensive experience working with businesses of all different shapes and sizes. Hiring a Los Angeles based CFO consulting firm does come with a higher price tag. However their reputations and experience will also be at a higher level.

What Is A CFO Consulting Firm?

A CFO consulting firm is a company that provides consultation services to businesses with regard to their finances. This can include anything from setting up books and making sure everything is in order, to providing guidance on how to handle the finances of a company or organization. CFO consulting firms are usually hired by large companies that need assistance with their accounting practices

There are many services that CFO consulting firms offer. Some of the most common services include bookkeeping, financial analysis, budgeting, and forecasting. They can also help with cash flow management, accounting, and taxation. In addition, CFO consulting firms can provide guidance on financial planning and investment strategies.

There are many benefits of working with a CFO consulting firm. This can be extremely helpful for businesses that are just starting out and can’t afford to pay for an in-house alternative or for businesses that are struggling to keep their finances in order and have recently lost or have never had their own CFO.

What are the risks of not having a CFO Consulting Firm?

 Without a CFO in house, it’s crucial to outsource to a CFO consulting Firm of some sort. But if a business thinks it can go without, they could quickly find themselves in financial trouble. They may struggle to keep track of their income and expenditure, and make poor decisions about how to allocate their resources. This can lead to cash flow problems, and ultimately force the business to close its doors. In addition, shareholders and creditors may lose confidence in a company that does not have a CFO, making it difficult to raise finance or secure loans. As such, not having a CFO can be a major risk for any business.without proper financial oversight, businesses can quickly find themselves in hot water.

Hiring a CFO firm is a big decision. You want to be sure you’re working with a reputable and qualified firm that can provide the services you need.

What Should I Expect From The Best CFO Consulting Firm?

As a business owner, you understand the importance of having a strong financial team in place. After all, your company’s financial health is essential to its long-term success. However, finding the right Chief Financial Officer (CFO) can be a challenge. Fortunately, there are CFO consulting firms that can help. When you partner with one of these firms, you can expect them to provide expert advice and guidance on a wide range of financial topics. In addition, they can help you develop and implement strategies for improving your company’s financial health. With their help, you can ensure that your company is on solid footing for years to come.

When you’re ready to find a CFO consulting firm, it’s important to do your research. Make sure to ask for referrals from trusted sources and read online reviews. With the right CFO consulting firm on your side, you can take your company’s financial game to the next level.

When searching for a CFO consulting firm, business owners must understand what they are looking for in order to make an informed decision. Many qualified firms can provide excellent service, but it is important to find a firm whose values align with those of the business. In addition, it is important to make sure that the CFO consulting firm has experience working with businesses in the same industry. This will ensure that they are familiar with the unique challenges and opportunities that exist within the sector. Finally, it is important to schedule a consultation so that the business owner can get to know the team and learn more about their services.

 

Los Angeles And General Information On The Area

Los Angeles, California is the second most populous city in the United States with a population of over four million people. It is also the largest city in the state of California. The Greater Los Angeles Area is home to over thirteen million people, making it one of the largest metropolitan areas in the world. Los Angeles is a global city with a diverse economy that includes aerospace, entertainment, fashion, finance, healthcare, manufacturing, and media. The city is also home to numerous cultural attractions such as museums, theaters, and art galleries. Los Angeles is renowned for its Mediterranean climate which allows for year-round outdoor activities. The city also has a vast array of parks and recreation areas. Los Angeles is an exciting and vibrant place to live. There are many things to see and do in the city. With its diverse population and array of attractions, Los Angeles is a great place to visit or live.

Los Angeles CFO consulting firms
Los Angeles CFO consulting firms

Los Angeles Area CFO Consulting Firms

As the second-largest city in the United States, it’s no surprise that Los Angeles is home to a thriving business community. According to a recent report, there are over 2,000 CFO consulting firms in the greater Los Angeles area. That’s nearly double the number of firms in New York City, the next closest metropolis. With such a large number of firms competing for business, it can be hard to stand out from the crowd. However, Los Angeles offers a unique market opportunity for CFO consulting firms. Thanks to the city’s diverse economy, businesses of all sizes and industries need access to quality financial advice. As a result, CFO consulting firms that are able to meet the needs of LA businesses can thrive in this competitive market.

Remember to do your due diligence and your homework before just choosing the first CFO consulting service that pops up on google when you type in, “How To Find The Best CFO Consulting Firm In Los Angeles?”. With more options than New York City, there are bound to be a few bad apples in the bunch. Ask around for referrals and read online reviews. With such a diverse economy of business in the area, you’re not the only company out there that has used one of these firms, rely on their experience.  Once you’ve narrowed down your list of candidates, interview them and ask questions about their experience and what they can offer your business. Ask plenty of questions, Have they worked in your company’s niche before? What kind of after-service support do they offer? Do they have references?

Make sure you understand the risks of not having a CFO consulting firm before making a decision, many companies think they can go without and end up in hot water. And finally,  get to know the team. After all, you’ll be working closely with them if you decide to hire their firm. A good CFO consulting firm will be able to offer a wealth of experience and knowledge to help your business grow and succeed. With the right partner, you can take your business to the next level.

If you’re still not sure where to start your search for the best CFO consulting firm in Los Angeles, we’ve compiled a variety of resources and other helpful articles at Startup Tandem to help you on your journey.

Conclusion: How To Find The Best CFO Consulting Firm In Los Angeles

Now that we have concluded the article and you have learned how to find the best CFO consulting firm in Los Angeles, we want to offer our recommendations. Startup Tandem is an excellent CFO consulting firm that works with startups in a variety of industries and stages of development.

If you need a fractional CFO to begin helping you manage financials and create a financial strategy, Startup Tandem is the perfect choice.

Take a look at their location below and contact them for a consultation:

You should now better understand how to find the best CFO consulting firm in Los Angeles and we wish you all the best!

How To Choose A Small Business Accountant

How To Choose A Small Business Accountant

How to Choose a Small Business Accountant

So you’ve started your own business. You can choose your hours, decide what product to sell, and have started figuring out your business model. Yet, you’re still missing a vital part of your ever growing, yet small, family. This person will become your biggest support brace in keeping your new ‘baby’ alive: your accountant. An accountant is going to be the person to zero in on your finances and other important data. Think of your accountant as your newborn business’ pediatrician. They are consistently giving check-ups and giving you reports on your business’ growth. So the question becomes: how do you choose your small business’ accountant?

PRO TIP: Before you quit your job and start a business, read this article here for more information on doing it the right way!

how to choose a small business accounting service
how to choose a small business accounting service

4 Tips For Choosing Small Business Accounting Services

TIP 1: Know First What You Need

Just like when choosing a doctor or any sort of specialist, you need to know what you need from your accountant. These guidelines will not only help you choose the right accountant for the job, but also help prospective accountants understand what you are looking for, or expecting. 

This also means that you should look for an accountant who has some sort of understanding of what your business model or product is. For instance, if you are starting a small business based in technology, you might want to have an accountant who is at least a little tech savvy. This allows your accountant to have an insight to certain purchases or financial habits you might have. 

PRO TIP: Read this article and learn how much does a CPA cost! We know it will give you valuable insight that will help!

TIP 2: Choose To Go Certified!

While you can certainly decide to go with an uncertified accountant, it may not be the wisest move. If you need things like bookkeeping services or even preparation for tax season, an uncertified accountant can definitely do that for you. Still, as you grow your business you want to think of the future. A certified accountant can give you a holistic understanding of your business finances. They have taken on massive training and gotten a degree in accounting to get to where they are now.  

Certified Accountants are able to do a multitude of tasks:

  • Set up an accounting system
  • Keep track of your books
  • Pin-point problems
  • Keep an eye on cash flow
  • Show you how you can grow or make changes

If you don’t choose to have a certified accountant now, you will want to go with one in the future. They  can help you with getting a loan or even when it comes to getting audited. 

TIP 3: Get Recommendations

Governments and other small businesses want places like yours to make it. Small businesses are good for the economy. Check in with your social network and ask for recommendations. If anybody is going to be able to give you comparable experiences, it is going to be other small businesses. Stop by your government’s Chamber of Commerce and ask for assistance there. 

The American Institute of Certified Public Accountants also has a database that you can access with a membership. This keeps track of all CPAs. This way you can look for CPAs with an active license. 

You also want to do thorough background checks on your candidates. Remember: you are asking this person to keep an ear on your business’ pulse and let you know if any issues arise. 

TIP 4: Be Picky With Who You Choose!

When it comes to your business you can never be too careful. It’s okay to interview multiple different accountants. Especially look at those with small business experience. Yes, you can choose someone who works for a big firm, but overall you want someone who is able to give you relevant advice when it comes to your growing business. 

Ask them about their experiences, and what kind of software they might need. This helps you get a better grasp of how flexible they are with growing. Having an accountant who is up to date with the latest software shows you they are willing to grow with your business. 

You can even ask them questions about what they would do in certain situations. They should want to save you money, yet do so in ways that will stay on the legal side of law. Afterall, it is your business and at the end of the day your responsibility. 

It’s important that they be willing to communicate with you. Afterall, communication is the key to a healthy relationship. 

In Conclusion: How To Choose A Small Business Accountant

There are many different aspects to look at when choosing an accountant for your small business. 

  • Flexibility
  • Certified or not
  • Small business experience
  • Even an understanding of your chosen business

Still, at the end of the day the accountant you choose has to feel right for you. This person is there for you to help your future and dreams come to fruition. Do your research and look at many different candidates. The right accountant is there for you. All you need to do is start looking. 

We hope you now understand some important tips for choosing a startup and small business accounting services. If you are interested in one of the best small business accounting and bookkeeping services, Startup Tandem is a great choice. They have locations all over the United States and offer fixed price services for startups such as your. You can feel free to contact Startup Tandem for more information on the services they provide or to request a consultation.

We hope you now know how to choose a small business accountant and wish you all the best.

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