Welcome to the Topic “ 3 Things a CPA Can Do to Help Your Small Business Grow “
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Many budding small business owners tend to feel like they can manage their business and financial health without the help of a Certified Public Accountant (CPA). However, the truth is, there are a lot of corners in terms of bookkeeping. If you turn the wrong one, you could end up with a big, fat audit by the IRS. Of course, a CPA’s job description covers more than simply keeping you out of audit trouble. Here are a few things they can do for you and your business:
They Can Get You Started
Starting a new business means making a lot of different decisions to create a strong foundation for success. There are likely decisions you don’t even know you need to make.
- The type of business structure that will work best for what you’re doing, such as a sole proprietorship versus an LLC.
- A CPA can give you a financial analysis in regards to your business plan, assist you with opening a business bank account and guide you in choosing accounting software that flexes with your services. This gives you better visibility into what makes your business profitable so you can focus on these revenue streams, as well as other perks like faster invoicing and expense tracking.
- Lastly, your CPA can help you understand how to track your income and expenses while remaining in line with government regulations and requirements so you don’t make any mistakes along the way.
They Can Help With Your Everyday Operations
Once your business has taken off, you’re going to have your hands full. A CPA can help lighten your load by assisting you with your daily accounting tasks.
- One of the primary things they’ll do is ensure that any independent contractors you hire are classified as such by the IRS.
- They’ll also take the time to clear up any confusion over your financial statements so that you understand the ins and outs of your own business.
- Your CPA can also take care of your company payroll and payments, as well as advise you on how much to pay quarterly for your taxes.
- Lastly, you can rely on them to close out your books at the end of the year so that all of the proper paperwork gets to the IRS on time.
They Can Help You Grow
When it comes time to expand your business, your CPA will be an incredibly valuable resource as he or she can advise you throughout the entire growth process.
- For starters, they’ll help you determine which areas of growth will bring in the most cash flow, giving you insight into cash flow patterns, inventory management, financing, and pricing. That way you can decide how to move forward in regards to what needs to be changed and what needs to be eliminated.
- They can also help you create financial forecasts so you can make better budget decisions and work alongside you to create a budget that will support your future business goals.
- Lastly, they’ll continue to keep you from getting audited by the IRS via advising you on expenses and how to report those expenses. In the event that you do get audited, they’ll be there to guide you throughout the entire process.
When you hire a CPA to help you with your financial tasks, you can hire them to take care of all your finances or just some of the important stuff, such as dealing with the IRS and payroll. Either way, it’s a good idea to enlist the help of a CPA when you’re getting started and when you’re ready to take your business to the next level.
