Distinguished from accountants by the stringent qualifications and licensing requirements they must meet, CPAs (certified public accountants) are widely recognized and highly trusted professionals in the business world. Not only do they play the critical role of a tax preparer, CPAs can be partners and strategists with small business owners in charting a path for a company or individual to thrive.
For the small business, a CPA can manage finances and taxes, identify profitable new product lines, help diversify investments, and provide consulting services. For the individual, a CPA can guide tax and financial planning, offer investment advice, and perform estate planning. Here are ten more reasons to hire a CPA:
- They are qualified and licensed to work on your business’s finances. CPAs are up-to-date on financial issues and state and federal regulations that will affect your company and are mandated to uphold the highest ethical standards in business practices.
- CPAs can develop a professional accounting system for your organization, essential for quick access to financials. They have the requisite knowledge and skills to apply innovations in accounting technology, enabling fast statement and report generation, efficient filing processes, and easy passage to your company’s finances.
- Better insight into your organization’s resources. CPAs are able to monitor assets, including ledger balances and detailed credits, debits, profits, and losses. They are positioned to advise on maintaining and increasing monetary resources.
- Your investors, creditors, and the bank will need comprehensive financial statements. A CPA will be able to deliver on this, providing reports that adhere to an accepted accounting standard. The GAAP (Generally Accepted Accounting Principles) includes revenue recognition, balance sheet classification, and materiality.
- Help you gain a greater understanding of what your financial statements mean. Your CPA can act as an advisor and run reports relevant to making key business decisions.
- Have confidence that the essential job of tax filing is done properly. Because CPAs are required to maintain up-to-date tax law knowledge, they have the ability to verify IRS and related compliance to ward off taxation trouble. They are also prepared to institute tax planning opportunities to minimize your company’s tax liability.
- Better navigate a tax audit. CPAs have the credentials to represent clients on audits, payment/collection issues, and appeals. Ideally, they can help clients avoid these situations through guidance and ensuring paperwork is filed properly and in a timely manner.
- Ensure your payroll taxes are accurately paid. As part of their profession, CPAs are educated in payroll accounting systems and have expertise in making certain payroll obligations are met.
- They make ideal advisors as you grow and invest in your company. Seek a CPA with experience in the same industry as yours that can translate to real-life advice for your company. They can aid in appraising the viability of future projects with profitability, gain, and loss forecasts. Their expertise can be instrumental in preparing future business proposals and plans that will grow your company.
- Gain an important networking source. Because of the respect they receive in the business community, CPAs often have extensive connections and can share these valuable professional contacts to help you organically grow your company.
As a small business owner, you are already charged with running daily operations and being the company’s visionary. You are tasked with developing strategies, growing the client base, selling services, and ensuring revenue streams. A CPA can help you shoulder much of the stress of overseeing a key element in your company’s health – its financials, freeing up time to focus on your real passion – the business you’ve created.