Many small business owners attempt to conduct their financial activity on their own. Alternatively, they may hire a part-time bookkeeper to come in and make sure that their transactions are logged. But what most business owners really need is a CPA -- even those who have small or medium-sized businesses. Here are a few of the principle advantages of hiring a CPA rather than relying upon a bookkeeper or other professional.
CPAs Can Save Money on Taxes
CPAs are very well-versed in business taxes. Not only will they be able to ensure that you pay your taxes correctly and on time, but they'll also be able to advise you on the ways to structure your business and your expenses to pay less in taxes. Bookkeepers may know how to report taxes, but they haven't undergone the training that is necessary to be able to identify potential benefits, such as new deductions and credits.
CPAs Can Create Projections
When growing a business, small business owners need to be able to project out their expenses reliably. CPAs aren't just trained in recording financial information -- like bookkeepers are -- but they are also trained in the ability to develop business plans and create future earnings projections. Through this, a CPA will be able to tell you whether or not your choice to expand your business could be risky. CPAs can also tell you how your business will fare in the coming years and will be able to tell you whether or not your business may need help for upcoming shortfalls. Essentially, a CPA provides basic financial advisory services as well as bookkeeping and tax services.
CPAs Create GAAP Financial Reports
CPAs operate on the Generally Accepted Accounting Principles (GAAP), which are necessary for all types of loans and investment. These are reports that are specifically consolidated to be consistent with known standards, and that will give potential investors and lenders valuable information about your company's expenses and worth. Through these financial reports, you'll be able to better tell your company's own financial situation while also representing it accurately to others.
CPAs aren't as expensive as one might think. Many CPAs do contract out the simple work -- such as data entry -- to a bookkeeper and focus their more expensive billing on items such as taxes. There are also CPAs that focus primarily on small business owners and can function as a valuable partner in the company's future success. Contact a company like Amos Maney & Payne CPA's LLC for more information.Share