The tax deadline just passed. Some business owners cruised right through the deadline filing on time, while others had to extend due to being behind on their recordkeeping. Many business owners put their accounting work on the backburner due to all the demands of running a business, however, good financial information on a monthly basis is what every business deserves, but how do you get there and who can help? If you’ve been wondering: “when should I hire a CPA?” – please read on.
How Can A CPA Help A Business Owner?
Many small business owners spend large quantities of time setting up and working in their accounting software. Many times this work is done sporadically. There comes a time when this work becomes so time consuming most business owners consider hiring a bookkeeper or accountant. Instead of hiring someone that needs supervision, space to work, training, etc., it may be time to outsource accounting work.
While yes, a CPA firm can prepare a business’ taxes, the right CPA firm is a trusted advisor for that business as well. As a trusted advisor, the right CPA firm can do everything from managing the day-to-day bookkeeping, preparing monthly or quarterly financials, to consulting on major business decisions.
In addition, and maybe most importantly, if a business has a CPA firm managing their accounting, there is a whole team of people well versed in that specific business’ details. This team can stay on top of the accounting no matter what. Business owners never have to worry about someone going on vacation or being left hanging if a position experiences turn over. Hiring a CPA firm provides not only peace of mind and a second set of eyes, but consistency in meeting business owners’ high standards for their accounting.
Other Times To Hire A CPA firm?
There are several major milestones at which it can be wise to hire a CPA firm. These milestones are:
- Before Starting a Business: It may seem like a stretch to spend what little start-up money many business owners have on a CPA firm, but it can save thousands of dollars, and many hours in the long run. A CPA firm can help a business owner determine what legal structure (sole proprietorship, partnership, LLC, corporation, or co-op) fits the business best, help to determine the best accounting software, and help to get the books set up.
- Before Tax Time: Most people think a CPA is there to prepare the tax return for a business. Although that is true, the most important role when hiring a CPA is tax planning, which needs to be done prior to year end. Minimizing the tax burden using tax strategy planning is something no business owner should be without.
- Special Scenarios: Time to consider changing a business’ legal structure? Considering a merger or acquisition? Needing to apply for a small business loan? Going through major life changes as a business owner? All these scenarios come with very specific questions that CPAs are trained and experienced in managing. Having someone to help guide a business owner through these times can make or break a business in the long run.
Key Takeaway Answers To The Question: When Should I Hire A CPA?
Hiring a CPA firm is a huge asset to a business owner and their finances regardless of the time of year. A CPA has earned a degree in accounting, passed a rigorous exam, and spends many hours each year taking continuing education classes to stay up to date on tax laws, software changes, etc. These special areas of knowledge will come in handy to a business owner in many different scenarios and makes it ideal to have a CPA already on speed dial. If this past tax season was absolutely draining for any variety of reasons, it is time to call a CPA firm.