You, as a small business owner, have to keep track of a lot of things. Such as maintaining the quality of products or services, offering robust customer support, and improving the services based on customers’ feedback. Though monitoring the financial state of your business is of great significance, as the whole backbone of your business relies on it. Instead of letting the financial health of your business go unnoticed, we highly recommend you should look for a Certified Public Accountant (CPA). Today we list the benefits of hiring a CPA for your small business.
We will also explore the 7 ways a CPA will prove beneficial for your business. But first, let’s explore What is the purpose of a CPA in a business?
What is the Purpose of a CPA in a Business?
The main purpose of a CPA for small business is to track the incoming and outgoing flow of cash as well as record the amount of sales your business makes. A CPA, or Certified Public Accountant, is a licensed financial specialist who will look forward to the financial state of your business and he will make sure your business complies with the (tax) laws.
Though you could hire an accountant or a bookkeeper to monitor the expenses and earnings of your business, a simple accountant won’t be officially licensed by the state your business operates in. He might not be as competent as a CPA because a CPA gets his license after he possesses the experience of working for at least one to two years as a public accountant, as well as after he passes the Uniform CPA exam. Let’s explore the 7 ways how a CPA can help your business.
7 Ways a CPA Benefits Your Small Business
The benefits of hiring a CPA far outweigh the salary you’ll have to pay him. You’ll get more time to focus on your business; he will make sure your small business complies with tax laws as well as will provide you with recommendations tailored specific to your business.
1. More Time for Your Business
The first benefit of hiring a licensed CPA for your small business is the peace of mind. Running a small business is hard if your business has two or more employees. You may have to oversee whether employees are doing their job well and whether they are serving your intended customer well.
A small business CPA online will save you a lot of time, as you won’t have to worry about the financial woes of your business. He will make sure your business isn’t overrun by a mountain of taxes and debts that are rising. You could use that time to focus on what matters the most for your business.
2. Reliable Estimation of Risks When Scaling Your Business
Scaling a small business requires money and/or debt. And if your business isn’t generating as much profit as you hoped, taking risks to scale your business may result in unintended financial consequences.
A CPA will analyze the financial health of your business and then will provide a concrete estimate of the financial risk your business may have to endure if you decide to launch a new product, acquire another business, or enter into a new market. You will also learn how much your scaling efforts will affect the profit margins of your business.
3. Less Tax to Pay
You might not be aware of the tax relief your small business is entitled to. But your CPA most certainly is, and he will make sure your business gets more tax benefits. Reducing the overall tax bill your business has to pay as he will claim the credits and deductions.
A CPA will also make sure your business complies with the ever-changing tax laws in the state your business is based in. New tax laws may also hide new opportunities for the reduction of your tax bill, which you may find a hard time disconcerting if you try to find them on your own.
4. Effective Marketing and Sales
Your business will need effective marketing strategies to boost the sales of your products. But effective marketing will also put a strain on the financials of your business, especially when multiple marketing campaigns are involved.
Your CPA will analyze the ROI each marketing campaign is generating. You’ll also learn which marketing campaigns are yielding a substantial boost to the sales of your product or service and which marketing strategies are not working for your business. You may end up saving more than what you initially had to spend.
5. Save Money
Finding out ineffective marketing strategies is one way a CPA will be saving money for your business. But this saving spree will level up even more if you let your CPA take the full financial reins of your business.
He will trace out potential savings you can make in terms of optimizing costs in maintaining the inventory of products as well as payroll for your employees. He will also pinpoint the exact areas where your business is consuming more money than it should be. Thus, a small salary for the CPA will bring more savings in the long run.
6. Simplifying Payment of Taxes
You might be tempted to fill out the tax forms for your business all by yourself. Filling out tax forms is way more complicated than doing basic calculations for your business, and there is a high chance you might miss something important when submitting the tax forms.
A certified public accountant is trained for the very job of filling out tax forms without making any unintentional errors that may penalize your business. A CPA may also secure credits to reduce your overall bill for taxes.
7. Protection of Financial Records
A well-trained CPA won’t just look after the financial health of your business, but he will also make sure the sensitive financial data of your business stays protected. The protection of financial data is important, as a bad actor may exploit and outright empty your bank account of the profits your small business just started to make.
Though you might need a CPA who has also received the Cybersecurity Maturity Model Certification (CMMC) and has actually worked in an accounting agency that has tackled cybersecurity-related issues before, as this will ensure that they have the necessary expertise to safeguard your financial records from potential cyber threats.
Conclusion
Hiring a CPA for Your Small Business is highly recommended for business owners seeking to protect the financial health and stability of their company over the long run. A CPA has extensive training and expertise that allows them to handle important tasks like taxes, financial reporting, budgeting, and cost analysis more effectively. This frees up the business owner to focus on growth-oriented activities like marketing, product development, and customer service.
Additionally, a CPA provides value through important services like ensuring tax compliance, identifying opportunities for savings, evaluating risks, and safeguarding sensitive financial data. The benefits of working with Ahmed CPA firm PLLC far outweigh the costs, where Ahmed Baqir is helping small businesses achieve their financial objectives and setting them up for long-term success.
Disclaimer: This article does not constitute tax advice. Please consult Ahmed Baqir, CPA at Epsilon Accounting Solutions PLLC, before making any tax-related decisions or taking any actions based on the information provided in this article. Ahmed Baqir, CPA, has the expertise and knowledge to provide personalized advice tailored to your specific financial situation and goals.
Suggested Readings
1. https://raincatcher.com/hiring-an-accountant/
2. https://www.forbes.com/advisor/business/do-i-need-cpa-small-business/
3. https://twcpas.net/10-benefits-of-hiring-a-cpa-for-your-business/
