Do you know how much the operations in your business are costing you? Are you sure that it’s actually making money for you? In order to answer these questions and more, your business needs a CPA. From sales and purchases to expenses and taxes, running a business can be an incredibly complex task.
A certified public accountant (CPA) specializes in accounting, which is the practice of keeping track of a company’s financial transactions in sufficient detail to verify them by another independent source. An accountant will help you with everything from understanding how your financial statements work to ensuring that your tax returns are accurate.
If your business isn’t able to do this in-house, a CPA will be able to assist. Here are seven good reasons why you should start working with a CPA for your business’s needs today.
1. If You are in the Startup Phase of Your Business
A CPA is essential when you are in the startup phase of your business. These industry experts help you navigate key operational aspects that see to your success. Hiring a CPA will help you determine suitable structures, create a sound business plan, and ensure you avoid detrimental financial compatibility problems.
CPAs are also conversant with government regulations concerning your business and other crucial financing aspects during the startup phase.
2. Track Your Business’s Payroll
Hiring a CPA will help you track your business’s payroll and see to it that your staff is paid on time. CPAs also undertake other crucial payroll aspects such as pension deductions, payroll taxes, and profit-sharing disbursements plus keep your records in excellent condition. They also ensure that your employees, independent contractors, and consultants are classified appropriately.
3. Proper Filing of Taxes
Since CPAs are highly knowledgeable about tax laws, hiring one will make certain that your business’s federal, state, and local tax returns are appropriately filed before deadlines. Moreover, they also ensure that you understand your tax deductions and guide you to avoid problems with the tax authorities.
4. Give Expert Accounting Guidance and Review Your Financial Statements
CPAs help you avoid the hassles associated with accounting and financial statements. They support you:
- Organize and file statements correctly
- Provide guidance on legal issues regarding financial improvement to improve your business
- Provide expert investment strategies suitable for the direction you want your business to take
5. Audit Purposes
If your business requires regular audits, then hiring a CPA is a great move as they make it a point to check your records for regulatory compliance. CPAs determine the accuracy of your financial books and records and identify misstatements arising from errors or fraud.
Hiring a CPA is essential when preparing for an initial public offering since they establish the fact you’re in compliance with all set provisions.
6. If Your Lender Requires a Financial Statement
At some point in expanding your business, you may require funding from a lender. A CPA will help you prepare your financial statement appropriately to submit to your lender and boost your chances of securing funding.
7. To Stay Within Your Budget
Hiring a CPA for accounting purposes in your business will ensure that you stay within your set budgets and thus increase the chances of survival. A CPA helps correct errors and supports you with your goals.
Need support with tax law compliance/ expert bookkeeping services? Then you can benefit from hiring a CPA from your business. Get in touch with Gurian CPA for the best financial services from our experienced CPA professionals.
Running a successful business is hard work. Let us help you grow your business.
