Only 40% of small business owners feel they are very knowledgeable about accounting and finance. For many business owners, accounting and finance can be two of the biggest challenges of running a business. Fortunately for your bottom-line, CPAs are available to improve these vital aspects of business.
CPAs are experts in business finance, taxes, and IRS regulations. Smart business owners often find success in spite of deficiencies in areas like finance, taxes, and IRS regulations. However, these disciplines grow every year and become increasingly complex. For example, CPAs are being bombarded with questions on the new tax changes for 2018. While these disciplines grow, business owners have many other aspects of business to concentrate on. This makes hiring a CPA a wise thing to do to optimize how a small business handles accounting and finance.
Here are five reasons that you need to hire a CPA:
- Small businesses often have the most to gain from working with a qualified CPA. Many business owners think hiring a CPA is a cost they can’t afford, especially in the early stages of business. However, it will likely save you money in the long-run. Businesses in the startup phase can benefit from a CPA determining the most appropriate business structure and analyzing a business plan for financial compatibility.
- Business and industry expertise. Small business owners simply can’t be experts at everything. Instead, they should seek out a CPA with expertise in their industry, which allows them to focus on running and growing their business. CPAs can often provide industry standards, benchmark statistics, and key performance indicators to help analyze business data.
- Your business structure requires audits. Not all small businesses are required to conduct audits, but unless you consult with a CPA you might not know until it’s too late. Also, all businesses should comply with generally accepted accounting principles. Hiring an accountant can ensure your records are compliant with the appropriate regulations.
- Your budget is falling short. According to the Bureau of Labor Statistics, half of all businesses will fail within five years of opening. Not budgeting appropriately will decrease the chances of your business survival. However, having a CPA to analyze your budget and catch errors will help you ensure your budget is on target for success.
- Peace of Mind. Business owners have so many things vying for their attention and it can quickly become overwhelming. That’s when mistakes start to creep in to a business. Deadlines get missed, extra taxes get paid, etc. A qualified CPA takes all of those worries from you and replaces them with added value to your business.
Today, the CPA is a trusted business advisor and can offer so much more in the way of professional advice, strategies, and acumen for growing your business. Instead of just meeting with your accountant once a year, you’ll be consulting your CPA throughout the year to review your financials and get savvy advice. If you’re still not convinced, think about it this way: the odds are that you probably hate excel spreadsheets, accounting software, and better processes—your CPA lives for that stuff! Let your CPA take care of the stuff you don’t like doing anyway and your business will be better for it.