6 Tips to Transition from a Day Job to a Small Business

1800Accountant offers 6 tips on transitioning from a day job to running a small business full-time.

1800Accountant offers 6 tips on transitioning from a day job to running a small business full-time. (Image credit: Flickr Creative Commons)

Throughout our lives, there are many transitions we make. Graduating from high school and going off to college is a big step. Getting married and having children is a whole new adventure. In the world of entrepreneurship, transitioning from a day job to running a small business full-time can be a challenging yet extremely rewarding process. 1800Accountant offers these 6 tips on making this transition go smoothly:

1. Develop a proper exit strategy for your day job.

When an entrepreneur officially opens up a new small business, it doesn’t mean this individual should automatically say goodbye to his or her employer. In fact, it may be a necessity to keep your day job for a long time before you fully concentrate on running your enterprise. Prepare for the best time that is appropriate for you to decide when it is best to move on from your job. A regular paycheck and benefits are hard to walk away from, so use caution and be sure you’re 100% confident in your ultimate decision to leave.

2. Ensure you are standing on solid financial ground.

With the incredibly long list of expenses to launch a new small business, having a a solid financial foundation is an absolute must. The last thing you want to happen is for you to go bankrupt because you failed to plan your finances for the future. Take plenty of time to write down specific dollar amounts on expenses and potential income for your new enterprise. Don’t give up your day job until you have a solid financial backbone to fall back on in the event of a worst-case scenario in which you are scrambling to find gainful employment again.

3. Be sure you have enough time to devote to running a business.

Working 40 hours a week at a job is one thing, but keeping up with the constant demands of a business is a whole different ballgame. Map out your time commitment and availability so that you know you’ll have enough time to devote to the company once you are fully invested in it in terms of both time and money. Your time will obviously get freed up when you leave a day job, but you’ll be faced with a brand new set of challenges as far as managing your time is concerned. The best thing to do is to compile a potential schedule for yourself, taking into account every last detail of being a business owner.

4. Have an open mind throughout this process.

Although traditional employment often puts boundaries around what someone does every day, succeeding in the business world requires an open-minded thinker. There are so many responsibilities you may be totally unfamiliar with. With that said, you should dive into a business with your eyes and ears open to potential customers, investors, and those who can steer you in the right direction.

5. Seek out help from others.

You just can’t operate a business completely on your own like you may be able to do at a day job. Seek advice and appropriate assistance on anything you don’t know how to do or where to turn. Countless services are available for small business owners, including organizations that can assist you specifically in your job-to-company transition. By getting this help, you’ll be in good hands moving forward with your decision.

6. Make sure you have a viable business for future prosperity.

On a final note, and perhaps most importantly, having a viable business plan in place is absolutely necessary when choosing to fully dedicate your time to an entrepreneurial enterprise. Of course, many entrepreneurs already set up their businesses prior to leaving a job and begin to see income from it. This offers a great barometer to see some real success so you know you’re doing the right thing. However, no matter what stage in this process you may be at, having a viable plan that will work for you and make you enough money to sustain your life is what you should focus on the most. If you are all set and ready to roll, proceed cautiously, and enjoy the ride.

For all of your small business accounting needs once you’ve officially transitioned over to yoru company, turn to 1800Accountant. Call 1-888-749-0117 or visit www.1800accountant.com.

How Can an Accountant Greatly Benefit a Small Business?

If you operate your own small business, your list of regular responsibilities can be ever-growing, putting you in a spot in which you are always behind and a little overwhelmed. According to 1800Accountant, using the valuable services of an accounting professional can take a lot of this burden off your plate and let you focus on your main priority – making money.

Generally speaking, most small business owners who conduct any kind of trade could benefit tremendously from having an accounting professional to help with the tax and financial aspects of their companies. But there are some businesses that may require this assistance a little more than others. For instance, a company that operates with more than just its owner can require additional attention with regard to bookkeeping, payroll, and other requirements. Unless you’re fully adept at paying employees or handling the various tasks of keeping your books and expenses in good working order, an accounting professional can take these time-consuming duties off your shoulders. This professional may specialize in working with business owners and would literally enjoy handling the complex figures and calculations involved in business taxes and finances. Time is a major part of this picture, which is why an accountant is perfect for frequent travelers, entrepreneurs with outside work obligations, and those who have families that need their much-deserved attention. It is so important to be able to devote a lot of time to your business financial situation. But if you simply don’t have enough of it in your schedule, an accountant may be an excellent option for your situation.

The Unique IRS Tax Requirements of Owning a Small Business

Since filing business taxes with the IRS has several unique obligations compared to personal filings, accountants who specialize in businesses can simplify these tax-related tasks to the point where you will not have to be concerned with them at all. Filing special business returns and taxes every quarter are just a few of the many unique requirements of owning a business entity. Remember that as a business owner, April 15th is not the only day to highlight on your calendar. Instead, there are numerous deadlines to be met. Missing one could take a big financial bite by getting penalized or having to file an extension. In addition, there are far more deductions and credits you can claim as a business owner compared to what individual taxpayers are eligible for. To help you hold on to more of the money your company generates, utilizing a knowledgeable and experienced business accountant may be able to save you thousands of dollars when filing your taxes. You can then use this extra money to put back into your business for future growth.

From a broad perspective, a large number of small business owners have a limited amount of experience related to the accounting field. It’s obviously not their fault, unless they are part of the financial and accounting industries. It is also another reason that handing these duties over to a professional is a fantastic decision to simplify your life and maximize the money in your bank account.

How 1800Accountant Can Help You

Turn to 1800Accountant for all of your small business accounting needs. You’ll enjoy the peace of mind knowing that all of your tax and accounting requirements are in good hands. You’ll also save money and enjoy some highly desired financial flexibility. Call 1-888-749-0117 or check out www.1800accountant.com.