As a small business, you probably deal with a lot of financial matters on a regular basis. Important decisions must be made on time, and you must invest your time in various daily activities and tasks that have a significant influence on your resources. No wonder, entrepreneurs look for the maximum ways to save money, and in that quest, they try to save on the cost of hiring a CPA.
Well, hiring a small business CPA is not a choice, at least in the competitive market, where you need a tax and a financial advisor on all matters concerning your business. In this post, we will try to decode the reasons why every small business and startup needs a CPA.
1. First things first, let’s understand the difference between a CPA and a general accountant. A CPA must pass a particular exam to get the certification as well as practice as an apprentice under another CPA for a number of years. In short, all accountants are not CPAs. CPAs are held to a set of standards, a certain amount of continuing education and ethics that must be complied with in order to maintain that license.
2. If you are a small business, you might have a whole range of new ideas, but before taking the final leap, you should talk to your CPA about the best kind of legal structure and how that will help your business in the long run. Make sure to ask your CPA if they have expertise in entity selection.
3. CPAs simplify the whole process of accounting and bookkeeping. There will be lesser mistakes, omissions and bookkeeping errors, which will help in smoothing other processes related to the taxes and financial matters.
4. As an entrepreneur, you are probably more interested in the final numbers on the spreadsheet. As such, hiring a CPA firm is one of the best ways to get accurate numbers that you can trust and make decisions from. You don’t need to bother about the smaller things because you know an experienced accounting professional is on the job.
5. CPAs save you considerable time and money. They will help you in avoiding common tax errors and making sure you pay the tax you owe and not a penny more. Hiring a CPA that is self-managed and that you don’t have to train is the smart way to save money and time for the entrepreneur.
Don’t forget, CPAs offer considerable advice on business and tax matters, as and when required. They will take care of the IRS notices and even the IRS representation. Needless to say, make sure you discuss your financial and other requirements with your selected firm before you hire them because each CPA firm has its own experiences. Also, compare pricing because some of the CPAs are known to work for smaller businesses and start-ups, which can be an additional advantage.