People often don't think about Certified Public Accountants (CPAs) until tax time. However, they can help everyone with many financial tasks beyond tax preparation. Here are a few ways that your CPA can you and add value to your business. Since 2020 was a record year for new businesses forming, we'll focus in on how a CPA can help your business...now more than ever.
4 Ways That CPAs Serve Business Owners
1. Helping You with a Start-Up or Established Business
A record number of new businesses have been registered in 2020 and that's continuing into 2021. That's great, but you will most likely need help when it comes to navigating your books and having your tax returns prepared. You will also have many questions to ask. Don't try to go it alone. A CPA has the answers to all of your financial and tax related questions. Don't start your business off on the wrong path, consider your CPA your "silent business partner". After all, if you're successful, your CPA will benefit as well. The time to hire a CPA is as soon as you are contemplating opening a business. He or she will set you up right. Delaying that decision until, let's say, you get an audit letter from the IRS will be costly and may devastate your business' chances for success.
2. Management Advisory Services
Small business owners often rely on CPAs for financial guidance. To become a CPA, an individual must complete 150 hours of college-level training in finance, accounting, business management and taxation. This coursework provides a strong foundation that equips CPAs to help business owners succeed.
CPAs often provide business consultations to owners on issues like cash flow management, forecasting, budgeting, tax planning, investments, and risk management. These services improve the financial health of your business and are valuable tools for determining your company's future.
3. Fundamental Accounting Tasks
Small businesses typically don't have a financial controller or a Chief Financial Officer (CFO) because they can't afford one. However, these companies still need help with basic tasks like bookkeeping, payroll, account reconciliations, and tax compliance.
The good thing about hiring a CPA is that he or she has the knowledge and skill to manage these needs for you. Since CPAs share their available time across a number of clients, you only pay for what time you need. Generally, this is way more cost-effective for small- to medium-sized companies because you are not paying for a full time CFO or controller. You also will save on any benefits cost that you would have to pay an employee.
4. Data Analysis
Key performance indicators, or KPIs, are essential metrics in any business. With their strong background in data modeling and analysis, CPAs help companies establish or refine KPIs as well as give you an "early warning" if things start to go south suddenly.
With the right measurements in place, business owners can easily track their progress and make data-driven decisions. Further, CPAs can help you save time and money and keep you on the road to financial success.
If you need help from a CPA, turn to Fresh Start Tax Resolutions. CPA Bob Kirnard has more than 30 years of experience handling tax and accounting needs for individuals and businesses in Greensboro, NC. He thoroughly understands the state and federal tax codes and offers IRS and state representation for clients. Learn more online or schedule a consultation at (347) 210-2799.
About the Business