Do You Need a CPA for Your Small Business?
Small business owners or managers wear a lot of hats. They are the main visionary behind the business’s success, the marketing department, and the main liaison in the communication with partners.
On the other hand, the owner is also the one making budgets, covering sales, hiring people, and making sure there are enough revenue streams.
When you gather all these together, it’s easy to understand why most startups fail in their first five years of existence. So, to avoid such a grim and abrupt ending, it’s crucial that you hire the right specialists to help you run the business. And one of these specialists is a CPA (Certified Public Accountant).
IF you’re not sure about this, let’s have a quick look at how a CPA can help ease your burden, even if you’re running a small organization.
What is a CPA?
If you don’t work in the finance or accounting niche, it’s rather easy to confuse accountants and CPAs, but they are not the same thing. In short, a CPA license is higher than an accountant’s.
CPAs can offer help with tax preparation, financial advice, and strategic business tips based on their knowledge and experience. If you want to learn more about the intricacies of this position, make sure to read this post to better understand what a CPA does.
In short, a CPA can offer invaluable insight on how/when to make a specific purchase or investment to get the best deal on all ends.
Why do I need a CPA?
I already have an accountant who helps with tax preparation – why do I need help from another specialist?
To Grow the Business
Besides being well-trained in several niches that can affect the development of your business, CPAs also have a strong network of managers, business owners, CEOs, and more. As such, a good relationship with your CPA may also mean a recommendation in their world.
To Attract Investors & Bank Loans
Most businesses need investors and loans to get off the ground. So, in order to find the best loan option, you will need the advice and help of a CPA. After all, these specialists are trained to work with the kind of reports and financial statements that are required when you apply for a loan or put together the dossier for an investor.
To Review Tax Information
Even if you don’t work with a CPA full-time, you should have them check your statements and review tax information at the end of each reporting period. This will be helpful in the case of a tax audit or any other such situations.
Also, they will have knowledge of any tax planning opportunities that may be applicable to your situation. Overall, a CPA is required to be up to date with the most recent tax laws and regulations, which can be extremely helpful for a small business.
To Get a Better Understanding of your Finances
Since they have access to your full financial system, CPAs can see the whole picture and apply their knowledge to it. This means they can provide useful information that will improve cash flow and help identify any black holes that consume resources without real results.
In addition, the CPA can review and improve financial reports used by decision-makers in their development strategy.
Wrap Up
For most small business owners it may be difficult to see why they should hire a CPA over a tax-preparation service or an app. However, in the long-term, businesses that work with a CPA are the ones that thrive.
A highly-trained specialist, like the CPA, knows how to maintain the financial health of any company. Also, they have the necessary information to provide invaluable insight into the usually confusing world of tax, loans, and investments.
