If you’re just starting your business or are on a restricted budget, you have undoubtedly – and understandably – spent time finding every possible opportunity to save money. And often, one such line item is accounting. Early on, new business owners think they can handle their own accounting systems, especially if they have any experience in accounting.
Unfortunately, accounting is one area wherein it could prove more costly to not hire a professional. So below, we’ve compiled a list of a few of the skills and services an experienced CPA can provide you and your business.
1. CPAs are highly qualified.
A CPA is licensed by a state after a rigorous exam and must keep current with tax laws through continued education in order to maintain a license in that state.
2. CPAs know tax laws.
For CPAs, knowledge of tax codes is a critical part of a CPA’s licensing exam and continued education, giving CPAs the ability to represent you before the IRS.
3. CPAs are experienced with IRS audits.
Easily one of the biggest reasons to use a CPA for your business taxes is that they are able to represent you before the IRS in an audit and execute claims on your behalf.
4. CPAs provide financial analysis.
CPAs can provide you a detailed and thorough financial analysis, as well as advice on tax and financial matters, putting their license on the line to provide tax and financial advice.
5. CPAs can create a budget and forecast.
By establishing a budget with goals for the next 12 months, you and your CPA can better identify how you have done in previous periods to make better growth decisions moving forward.
6. CPAs can help you identify KPIs.
Starting with a few key performance indicators (or KPIs) that are important to your business, your CPA can help set up KPI reporting, allowing you to analyze their performance to help you make better decisions.
7. CPAs understand cash flow projections.
Your CPA can create a financial report that can tell you how expanding product lines, increased direct costs, and adding employees or a new location can impact your cash flow so you can mitigate surprises.
8. CPAs know industry benchmarks.
Whether through different subscription-based sources or financial benchmarking analysis tools, CPAs can provide a report so you can see how your business compares to others in your field.
One of the most important things you can do for your business is to recognize when you need the help of a professional and more often than not, business owners can’t afford to not hire a CPA. But in the interest of saving money and sticking to a budget, find a CPA firm that includes a bookkeeper for monthly, quarterly and yearly financial reports, and a CPA you can enlist to analyze returns, represent you at a tax audit, and help you make more high-level business and tax decisions.
Contact Bedinghaus & Co. today for more information on how we can help you know – and grow – your business.