10 Reasons Why You Should Hire a CPA for Your Business

Wouldn’t you like to have a strategic advisor for your small business? It’s exciting to start and own your business, but you need more than a good idea. Investors need to know that you can make and manage money.

Hiring a CPA firm can provide your business with expert financial guidance, ensuring compliance, maximizing tax savings, and fostering long-term financial success.

With so many factors, it’s easy to lose focus and lose track of your cash and expenses. Let’s not forget that one bad interaction the IRS could set you back years, or even force you to give up on your business.

Certified Public Accountant (CPA) can help you with all of this. Keep reading to learn why you should hire a CPA for your business.

What Does a CPA Do?

Many people are unaware of how much CPAs do.

If you’re starting a new venture, they can vet your idea, identify startup costs, and even help you with a pitch for investors.

In order to become a personal accountant, CPAs take their jobs seriously, as they can be held liable for personal misconduct. They are licensed by certified state and federal licensing boards.

With their strict code of ethics, they can offer skilled accounting, auditing, and reporting services.

There are certain tasks that only CPAs can perform, such as filing a report with the Securities Exchange Commission (SEC).

While some businesses think they can get by without a CPA, there are many reasons to hire one.

Why Hire a CPA?

Here are 10 reasons why you should hire a CPA for your business.

Looking for a more comprehensive list? Read more about how a CPA can help you make more informed decisions for your small business.

1. You’re Self Employed

Owning your own business can be costly. The last thing many small business owners want to do is shell out hundreds of dollars for a consultation with a CPA.

But owning your own business is exactly why you need one. 

A CPA can help you avoid mistakes that would cost you more to fix in the long run. This is especially true as you’re starting your business. They can help you determine your business structure, choose accounting software, and give you a realistic view of your expenses.

2. You Have Multiple Sources of Income

It’s easy to blur the lines between personal and business expenses. 

Successfully running your own business means knowing how to manage your cash. A good CPA will help you set up a recordkeeping system that keeps your personal life and work life separate. This will save you from any confusion come tax time.

3. You’re Bad With Numbers

If you’re not so great at math, save yourself the headache and hire someone to perform your accounting tasks.

You might be good at selling, marketing, or consulting, but are you good at accounting? Focus on your business and what you excel at and let a professional handle the rest.

4. Reduce Debt

Did starting your business hurt the bank? If you’re in a mountain of debt, a CPA can help you figure out how to pay it off.

A CPA can help you identify weak areas in your business model, or where you spend money unnecessarily. They will help you manage your cash flow so you’re always able to pay your bills on time.

5. Prepare Taxes

A CPA can make navigating tax season a painless experience. 

As a small business owner, you may be tempted to tackle your taxes on your own – especially if you have always done your personal taxes. Keep in mind that business taxes and personal taxes are totally different.

Small businesses are audited slightly more than individual taxpayers. Excessive expenses are a good way to trigger an audit. You don’t want to take a chance and get audited by the IRS without having a CPA to represent you.

After they prepare your taxes, they can help you reduce your tax liability the next year. For this reason, their advice can be invaluable to your business. 

6. Navigate Special Circumstances

You never know what special circumstances could pop up as you’re running a business. You may need the expertise of a CPA in certain situations. 

If you’re looking to take out a small business loan, a CPA can help you determine which financing options meet your long-term business goals.

If situations arise in your personal life, such as divorce or the loss of a partner, a CPA can look out for tax implications.

Your CPA can also represent if you are contacted by the IRS for any reason. 

7. Keep Up With Tax Laws

With significant experience working with the IRS, CPAs are familiar with tax laws and can keep up as they change over time.

By hiring a CPA, you are reducing your personal liability. You don’t have to worry about providing the IRS with misinformation or accidentally bending a tax law. This can reduce anxiety around tax season.

8. Handle Organizational Changes

Maybe you’re considering selling your business, merging with an existing business, or taking on a new business partner.

All of these situations can be confusing when it comes to managing associated accounting tasks. 

CPAs are trained to advise business owners during acquisitions, mergers, and other special circumstances.

9. Save Time

Hiring a public accountant can save you time and give you more energy to focus on your business. 

They will plan for the long term so that you don’t have to.

Most importantly, outsourcing accounting decisions and identifying poor accounting processes will help you run your business more efficiently.

10. Save Money

We’ve saved the best for last. A CPA can help you save some serious money.

When tax time comes, they can identify loopholes and tax moves that could save you thousands of dollars.

With years of experience, a CPA can help you budget smartly. They will improve your bottom line by setting up accounting software to manage repetitive tasks, guiding your hiring decisions, and even helping you manage inventory.

How Do You Hire a CPA?

The average accountant charges anywhere between $150 and $400 an hour, depending on their level of expertise. Most will determine a total fee for bigger projects, but they should be willing to negotiate.

Check out your local business directory or ask your business network for recommendations.

Once you have narrowed down the potential candidates, ask them about their experience and don’t be afraid to ask for references. Make sure you also ask for a list of services.

What Are You Waiting For?

You will be in awe of the difference a CPA can make. Hiring one is well worth the cost.

Stop working off of vague numbers and reports. Know exactly what kind of financial shape your business is in by choosing to hire a CPA. 

It’s important that you have a good relationship with your CPA, so vet any potential accountants before making a decision to work with one.

Looking for more exposure for your business? Advertise with us to reach our daily audience of nearly 600,000 people.