What’s Behind Every Successful Small Business?
Although small business owners and entrepreneurs – especially those newly established- often prefer the DIY approach to accounting and tax services, it’s not always the best option for the long-term future of your business. As the owner, your time and focus should be on increasing revenue and growing the business. Hiring a good Certified Public Accountant (CPA) is well worth the expense.
Remember, as the owner , you’re ultimately responsible for your business taxes. So take the time to find a CPA you can trust. Its always money well spent.
Finding a qualified CPA
Ask for referrals from other business owners at networking events, and at your local chamber of commerce. A banker or attorney also could be a valuable resource. Look for a CPA, not just a tax preparer. Your best CPAs typically have a masters in tax, are certified through the AICPA (American Institute for Certified Public Accountants), and meet the annual education requirements.
You’ll also want to ask questions of your CPA. What size businesses do you typically work with? Where did you obtain your initial experience? Have you worked for large firms, or always been on your own? It’s also a clever idea to ask for client references, and see what’s on google.
Abilities of a Certified Public Accountant (CPA) :
Saving your time: Time is the one resource you don’t have enough of, and it’s best spent doing what you do best – producing. Letting a professional handle your financials relieves the pressures on your time, and relieves stress, as well. It’s tough enough just trying to succeed.
Legally structuring your business: Are you a sole proprietor, corporation or LLC? A good CPA can offer expert advice on the best legal options for setting up your enterprise.
Full-service financial assistance: CPAs offer more then just tax preparation. For smaller businesses, a CPA can fulfill the role of CFO by managing the books, reconciling income and expenses with bank statements, and keeping you on budget. Other services available include business valuations, and auditing.
IRS auditing: Should this ever occur, you want a tax professional on retainer, one who is well versed in the audit process, and can assist you in working through it.
Applying for a loan: your lender will require accurate financial statements. Here, your CPA can work directly with the lender in establishing your qualifications.
To conclude, a good CPA can be invaluable as a partner, keeping you up to date on the latest business tax information, and potentially even reduce your liability