The Benefits of Hiring a CPA For Your Small Business
As a small business owner, you’ll need to be able to tackle a number of different responsibilities every day. You’ll be a marketer, a salesperson, a janitor, a human resources mediator, and a warehouse manager.
But sometimes the difference between success and failure lies in knowing when you need to bring in expert help. The truth is that hiring a CPA is one of the smartest moves you can make if you want your business to grow and thrive.
Is hiring a CPA worth it? What are some of the advantages of hiring a CPA? Read on to discover the many reasons you should hire a CPA to get your financial life as healthy as possible.
Start Your Business on the Right Foot
Starting a business is a very exciting process, but getting off on the right foot is important.
One in five businesses fails within the first year, and half of all small businesses will close within five years of business. You want to give your business the best start possible so you can beat the odds and succeed.
A CPA can help you set your business up for success from the start. They can advise you about what sort of business structure to choose, what kind of small business loan to get, and how to set up your finances. They can even run revenue projections to give you an idea of how much money you’re likely to make during the start of your business so you can better plan for success.
Optimize Your Taxes
Handling taxes is one of the least fun parts of running your own business. But a CPA can help you set up your finances so that taxes are handled bit by bit throughout the course of the year.
When it comes time to file, all you have to do is gather the information that’s previously been cataloged and run your taxes.
A CPA can also help you make sure you save as much money as possible on your taxes. They know all the deductions and workarounds that can reduce the amount you have to pay at the end of the year. Even after you pay them for their services, you’ll still likely come out ahead on your tax costs.
Reduce Filing Problems
When you do get ready to file your taxes, you want to make sure that all your paperwork is in order and properly completed.
For one thing, improperly filed taxes could cost you more money and time. But they could also leave you at a higher risk of getting audited if the IRS gets wind of the fact that you’re filing incorrect tax returns.
A CPA can help you ensure that everything gets done properly on your taxes the first time. They’re very familiar with business tax codes and can make sure that you’re filing all the forms you need. Even more importantly, they'll ensure that they’re completed in the right way.
Not only will this save you time and hassle, but it can also keep you from lying awake at night worrying about whether all your 1099s went out properly.
Get Help with Audits
Although no one wants to get audited, if you run a small business, there’s a good chance it’s going to happen at some point. Audits can be stressful and time-consuming, requiring you to dig out every little financial detail of your business operations for the last several years.
But when you hire a CPA, not only will you be better protected from audits, you’ll be more prepared when they do come around. A CPA can help you organize your finances so that all the forms you need are in one place in the event of an audit.
Rather than digging through years of financial statements, you can gather everything you need with just a few clicks. This sort of neat organization can make the audit process much easier and quicker so you can get back to running your business.
Get Expert Advice Year Round
While CPAs are certainly helpful during the early days of your business and around tax time, they’re also a valuable resource to have on your team all year long.
CPAs can advise you about the best investments to make in your business so you can keep your revenues on the rise. This can include everything from how much to spend on a marketing campaign to when to hire new employees.
If you’re looking into buying a competitor or merging with another business, a CPA can help you navigate those deals. They can let you know when it might be a good idea to take out a loan to grow your business and what kind to get. They’ll also help you keep your finances in order so you don’t have to get them organized in a panic when tax time rolls around.
Reduce Demand on Your Staff
When you hire a new employee, you want them to be able to focus on the job you hired them to do. They should be working to promote your business, provide an amazing customer experience, or explore new expansion opportunities.
But too often in a small business, people wind up wearing multiple hats and having to split their focus among several tasks.
Hiring a CPA can reduce the demand on your staff and help them focus on the jobs you hired them to do. Your CPA will take care of your financial needs, and thanks to their expertise, they’ll be able to do it more efficiently than your other staff.
Reducing this workload can not only make your staff more efficient, but it can also improve their satisfaction levels too.
Bring in New Leads
You might be surprised to learn that hiring a CPA can even help you bring in new leads for your business.
CPAs work with a number of businesses in your area and so are something of a networking hub in your local economy. When you establish a good working relationship with your CPA, you get access to a miniature universe of potential clients.
Your CPA is in a strong position to make networking connections and business recommendations to all their clients. If someone comes in needing a service you offer, they can say, “Well, I actually work with a business that does exactly that.”
Likewise, when you’re needing a little extra help, your CPA can recommend businesses for you to connect with.
Find Your Best Financial Path
Even when you start out on the right financial foot, trying to navigate the best path for your business can be tricky. You’ll make a thousand different decisions that could make or break the future of your business.
And if your area of expertise isn’t finance, it can be difficult to know what the best decision for your company will be.
A CPA can act as an expert advisor during these critical turning points in the life of your business. They have the expertise to let you know what the ramifications of each decision will be and which will bring more success for your company. They may even be able to suggest other options that you might never have thought of and which will work better for you.
At the end of the day, one of the best things a CPA can do for your business is helping you to save money. Every dollar you save is a dollar you can spend growing your business and ensuring you stay in the black.
But without expert financial advice, you could be losing money in areas you thought were a necessity.
A CPA can take a look at your overall financial situation and let you know where you can cut corners. They can show you more affordable and cost-effective ways to do things and make sure that every dollar you spend works as hard as possible.
These sorts of savings can keep you on the road to success. It will put you in a better position to live the lifestyle you’ve always dreamed of.
Discover the Many Benefits of Hiring a CPA
A certified public accountant can bring your business the sort of financial expertise and advice you need to succeed in today’s cutthroat market.
They can help you start your business on the right financial foot. They'll make sure that every dollar you invest in your business goes to good use and guide you through difficult business transactions. They can also make tax time much easier and help you manage audits smoothly when they happen.
If you’d like to discover the benefits of hiring a CPA for yourself, check out the rest of our site at Pacific Accounting group. We offer a broad range of services for business owners, executives, and independent professionals at affordable rates. You'll be happy to see that the cost of hiring a CPA is affordable too.
Contact us today and start getting an accounting service you can count on.
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