It’s tempting to think, “My business is too small to need a CPA” or “Our transactions are fairly simple so there’s no reason to hire a CPA” or “I’m just starting out so why would I need a CPA.” We see and hear sentiments like these a lot.
But, a Certified Public Accountant, or CPA, should be a part of your business team. A CPA is different from a bookkeeper and general accountant because a CPA offers financial strategy too. And strategy prepares you for the future…for the next steps.
This article outlines 3 reasons your small business will benefit from a CPA.
1. Expertise in Tax Planning and Compliance
Business taxes – federal, state, and local – involve a wide array of rules, deductions, and credits that vary based on the structure and industry of your business. Understanding and navigating these intricacies requires a thorough knowledge of tax codes and regulations.
And while we suggest having a basic understanding of business taxes, the complexity of the codes makes a CPA vital to your small business. (Your plate is already very full. A CPA or CPA firm can remove some things from your plate!)
A Certified Public Accountant possesses specialized knowledge in tax planning. They can analyze your business’s financial situation and create a tailored tax strategy. A CPA can also help you take advantage of tax breaks, credits, and deductions that are applicable to your specific circumstances.
By optimizing your tax approach, a CPA can significantly reduce your tax liability and keep you operating legally. Non-compliance with tax laws can have severe consequences for a small business – poor reputation, fines, penalties, and even legal action.
2. Financial Analysis and Planning
Accurate financial analysis provides a clear picture of your business’s financial health. This process involves evaluating revenue streams, projecting expenses, and considering varying scenarios.
The information from this analysis is vital for making informed decisions about the future – resource allocation, your investments, possible expansion plans, etc.
3. Ensuring Accurate Financial Records
Accurate bookkeeping is the cornerstone of financial management. It involves meticulously recording all financial transactions, including sales, expenses, and investments. A CPA ensures that financial records are not only accurate but also well-organized and easily accessible, meaning categorized transactions, reconciled accounts, and a clear audit trail.
Without accurate records, a business may face challenges in providing the necessary documentation. And this can lead to financial and legal complications.
Morgan & Associates are Ready to Help Your Small Business
From navigating business taxes to providing insights for strategic financial planning to helping ensure organized financial records, a Certified Public Accountant is an investment that pays dividends.
We at Morgan & Associates have helped hundreds of small businesses – ones just starting to ones that have been around for decades. And we’ll use our team of CPAs and experienced staff accountants and bookkeepers to help your business too.