Small business owners face many challenges managing their operations, from HR and finances to tax law compliance. Certified Public Accountants, or small business CPAs, can take over these responsibilities and uncover opportunities for savings or revenue growth and then help to implement those strategies for the success of your small business.
The experienced CPA professionals at Diener & Associates will share insights on some of the most significant advantages of using CPAs for small businesses including their ability to provide fraud detection and ensure compliance with tax laws relieving you of those burdens.
What Is A Small Business CPA?
Certified Public Accountants (CPAs) are professional accountants who have passed a rigorous certification exam. This exam tests in four areas: auditing and attestation; business environment and concepts; financial accounting and reporting; and regulation. After having successfully passed this exam, a CPA is then required to complete regular continuing education credits to stay current with changing laws.
What Do Certified Public Accountants Do?
CPAs provide various financial services to individuals and businesses, including tax preparation, bookkeeping, auditing and financial planning. They serve an important role in helping clients make informed decisions about their finances, reduce tax liabilities, and improve financial reporting. Some of the critical duties that a small business CPA can perform for your company can include the following:
Tax preparation: Preparing and filing federal, state and local tax returns for individuals and businesses.- Bookkeeping: Keeping accurate financial records, including recording transactions, reconciling bank statements and generating financial statements.
- Auditing: Conducting independent evaluations of financial records to ensure accuracy and compliance with accounting standards.
- Financial planning: Providing advice on financial strategy, investment options and retirement planning.
- Fraud detection: Identifying and preventing financial fraud through internal controls, audits and other methods.
- Business consulting: Providing advice on business operations, financial management and other important business issues.
For most organizations, the role of a CPA is to provide reliable and accurate financial information and services to individuals and businesses.
CPAs vs. Accountants; Is There a Difference?
CPAs have passed the CPA licensing exam, are accountable to state accountancy boards and are held to high ethical standards. In addition to the core responsibilities of an accountant, CPAs are authorized to provide auditing and attestation services.
An accountant is a general term for anyone who performs tasks related to accounting, finance and taxation. Accountants may or may not have professional certifications or licenses, and their expertise and responsibilities can vary widely.
Put simply, all CPAs are accountants, but not all accountants are CPAs. The title of CPA indicates a nationally recognized certification, a higher level of education, training, and expertise in the field of accounting.
Benefits Of Hiring CPAs for Your Small Business
Operating a small business can be a challenging and time-consuming endeavor. Business owners are required to focus on many things at once, from managing employees and satisfying customers to marketing and growing the business. In the midst of all this, managing finances and maintaining tax law compliance can be overwhelming.
A CPA, as a licensed expert in their field, provides impartial analysis of the financial state of the business and can pinpoint areas where improvements can be made. They collaborate with business owners in financial planning, assisting them in setting practical goals and working towards achieving a better financial outcome.
Having the professional guidance of a qualified CPA ensures that a business owner’s financial record-keeping is accurate and complies with all relevant laws and regulations, reducing the risk of financial disputes or tax audits. This helps safeguard the business’ assets and assures the owner.
Outsourcing a CPA can be a worthy investment and provide ample value to the business. By delegating those responsibilities to a CPA, the business owner can focus on other areas of the business. With their financial expertise and insights, CPAs help identify opportunities for cost savings and revenue growth, ultimately leading to a stronger bottom line.
Diener & Associates Can Help Your Small Business
Using Certified Public Accountants (CPAs) for small businesses can bring numerous benefits to any size business. From providing expert financial advice to ensuring compliance with tax laws, CPAs can help small business owners make informed decisions and grow their businesses. They can also help reduce the financial stress and workload of business operations, allowing owners to focus on their core operations.
The experts at Diener & Associates know that managing and growing a small business is hard work. Between the new regulations, taxes and other financial responsibilities, it requires valuable time to stay current with all the changes businesses face. Contact Diener & Associates to learn more about the benefits their CPAs can provide to your business.