Businesses have a lot on their plate that they must handle on a day-to-day basis. Besides making sure they have the right employees to handle operations, deciding on new marketing strategies, and dealing with operational problems, there’s always plenty to do. Handling the accounting can start to get more complicated as your business grows, which is why many businesses turn to a CPA firm to manage this aspect.
A CPA firm is an organization that consists of at least one Certified Public Accountant (CPA) who helps businesses with a variety of different financial aspects including creating detailed budgets, projections, and taxes. A Certified Public Accountant is an accountant who has undergone specialized training, educational requirements, and professional practice. They have also passed a CPA exam that demonstrates their expertise in accounting.
Benefits Of Hiring a CPA Firm
Hiring a CPA firm can be extremely beneficial to business owners who are already swamped with all the other activities involved in running a business. Hiring a CPA firm frees up their time and takes those responsibilities off their shoulders so they can focus on their other business functions.
CPAs are experts in their field, and their job is to keep up-to-date with regulations that often change over time. If your business fails to keep up with these changes, you might face fines or even prosecution by the IRS. The knowledge and experience that a CPA brings to your business can also help you save money because they will know how you can take advantage of tax benefits and credits that you might not know about.
Hiring an in-house accountant or team can often be more expensive than hiring an outside CPA firm. You may be happy to learn, however, that CPA firms typically bring a different perspective based on their experience with working with other types of businesses that you might not otherwise get from an in-house team.
Improve Accuracy Of Financial Records
A CPA firm can keep your financials updated with the latest tax rule and regulatory changes that could affect them. Their expertise will also help maintain their accuracy, whether it’s for taxes or day-to-day operations. This will allow you to have a clear view of how your business is doing financially. Keeping your financial records up-to-date and error-free will also help avoid a potential IRS audit.
Keep Costs Down
As discussed before, hiring your own in-house CPA(s) can actually be more expensive when you consider additional headcount, training, and benefits. However, adding these duties to someone else’s job or doing it on your own will likely not save you money the way you may think it would.
Firms can actually save you during tax season and also find other areas of your business that could be considered for cutting down costs. A third party is often a better resource for keeping track of payments, determining which expenses are unnecessary, and helping prevent fraud within the business.
Save Company & Employee Time
As a business owner, you already have a ton of work that you have to do every day. It’s not possible for you to be responsible for every aspect of your business. One of the most integral parts of your business is the financials because it will tell you whether the business is profitable or not. That’s why these tasks should be taken on with care and time.
Hiring someone else to take on these responsibilities will actually save you a lot of time. When you have someone who you can trust and rely on to handle your financial activities, you don’t have to worry about the work being done right.
Obtain A Legal Safeguard
With many legal complications that exist with running a business, hiring a CPA firm that keeps track of your transactions and activities in a proper manner will be invaluable if a legal dispute arises. They will be able to present the proofs and ledgers when asked to do so in a deposition or court. In addition, a CPA firm is aware of the laws that are in place so your business doesn’t run the risk of accidentally breaking one.
What To Look For In a CPA Firm
Are you ready to look for a CPA firm for your business? Ask fellow business owners, friends, and family for recommendations. There are also online sites where you can find a CPA by state or area of expertise. Once you’ve found a CPA firm that fits what you’re looking for, read their reviews, or ask for their references. Previous clients are a great source to find out about their reputation.
A good CPA firm should never seem to promise things that seem too good to be true or promise you a “big refund”. Reputable accountants won’t make claims about your return’s size before they’ve seen your financial information and made calculations.