Whether a brand new start-up or a business of thirty years, every small business can benefit from a CPA managing and filing the taxes and advising on business holding, ownerships, and acquisitions. This is not industry-specific, or experience specific; even some of the most successful CPA’s in turn hire other CPA’s to help them. And here are 5 reasons why.
- Expertise – The most obvious reason, and also the most important, CPA’s have expertise in taxes and business planning. A good CPA will not only file your taxes, they will help you decide how and when to purchase new equipment, if lending makes sense for your business, if it’s time to change your model, or if there is another avenue to pursue. CPA’s do much more than simply file your taxes, they can be a true partner in your business, helping you to grow and succeed. And on the tax front, knowing what is and is not an actual deduction can be important to avoid an audit. Should you ever go through an audit, you’ll be happy to have a CPA standing there with you, discussing tax code with the IRS on your behalf.
- Second Set of Eyes – Even most CPA’s have someone look over their returns. Why? It’s important to have someone else’s perspective. When you are too close to something, you don’t always see it for what it is. It can be easy to miss a deduction, or to claim a deduction you shouldn’t, because you are directly involved in it. A CPA is an unbiased observer who can give sound advice and review everything you are doing to help keep you out of trouble.
- Time Management – Just because you can file your taxes doesn’t mean you should. Beyond the expertise an accountant has, they afford you the time to focus on your business, rather than spending your time reading tax code to determine what you can write off.
- Protection – If you ever go through an audit, there is no better ally than a CPA. Unfortunately, there’s not much anyone can do for you once your taxes are filed. By using a CPA, you have someone who will be able to stand behind everything on your taxes, so if you are audited you are not alone. And if there are any issues, they often have protections in place so it won’t cost you anything.
- Connections – Who do CPAs see every day? Small business owners. By using a CPA, you will gain access to an entire network of business owners in your community. And the better your relationship with your CPA, meaning the more engaged he or she is in your activities, the more the CPA can help. Having a strategic partner who has connections across multiple industries can be the difference between a business succeeding and failing.
There are many businesses which succeed without a CPA, but by looking at what a CPA brings to the table, why would you ever forgo one? A CPA can be an incredible asset and a business partner for decades, if properly utilized.