At what point to get serious with accounting for business

[on_my_own]

I started an online site and start up costs were very little. It's been 3 months and I have made a bit of profit, but nothing too significant. At what point should I actually consider consulting with an accountant about possible options to minimize the tax I need to pay back for profits. Currently, any money made is just deposited into my personal account since it's just a few bucks here and there. I don't know if it will be worth it to get a business tin, LLC, business checking account etc for such a small venture (more like a hobby). Looking for any advice so if one day I see an accountant, I'll have some specific questions to ask

Thanks

[Freelancier]

I'd spend on the accountant now, but that's me. It'll cost you about $400 for a couple of hours and they can answer all your questions as well as help you figure out the best ways to lower your tax bite not only from this business, but also all your other income streams (if you have those).

[Wozcreative]

Yup do it now. They can teach you things you may not have known before. How to better structure your business, how to save money, proper licensing, changes you'll need to make if you do grow etc.

[zachariahlogan]

Check with your local government, ususally there is a threshold to define a something as a Hobby, and something as a business.
As soon as you pass that threshold, it would be time to seriouslly consider hiring out your taxes.

[TAAccounting]

On My Own,

I disagree with Zachariah. Being an accountant, I say the sooner you have guidance and consultation the better.

The situation you want to avoid is to find out that you have been treating your start-up cost incorrectly, that items should have been depreciated instead of expense, or a number of other things that could occur without an accountant review and guiding you.

Also, remember that a good accountant will mentor and teach you. Majority of my clients, I see once a month. But those that just started off see me as often as needed -- this is to ensure they are having all their questions answered. So pick your accountant wisely.

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[Jschultz]

An accountant is an Asset to your business. It is never too soon to consult one.

[Jschultz]

I disagree with the position Zach took.

[jamesray50]

The best time to get serious with accounting for your business is when you start your business. You need to keep track of your expenses, your startup costs. Even if you haven't opened your doors for business you still need to track everything.

But, you don't need to do anything extravagant if you are small. You can keep track of everything in a simple spreadsheet, or a free accounting program (there are many available), or for a small monthly fee a cloud accounting program. Keep records for everything. You can scan receipts and store them in a folder on your computer, or keep them in a shoe box.

What you don't want to do is wait until tax time and then have to hunt for receipts and records and try to recreate everything. You will get frustrated, and possibly miss transactions that could result in a reduced net income.

Good luck!