Many entrepreneurs and small business owners dislike common financial tasks like accounting and bookkeeping. It’s not shocking, since most entrepreneurs lack the necessary training for deep insight into their finances.
In fact, many lack any formal business training at all. Instead, they struggle through with a combination of self-education and trial-and-error to learn how to run their businesses. While this can-do approach makes sense when you can’t afford experts, it can actually damage your business when your finances would support hiring a certified public accountant.
You might wonder why, if you’re already doing your own taxes, you should bother. Keep reading and learn about the advantages of hiring a CPA.
Financial Planning
If your business makes enough that you can realistically afford a CPA, there is a very good chance that you’re making enough that financial planning would save you a lot of money. While no CPA can fix things you already did this last year, they can advise you on what you can do next year, such as:
- Donations
- Portfolio management
- Asset strategies
Hiring a certified public accountant firm, such as Robinson Deloache, LLC, lets you access that financial expertise.
Confidence in Your Taxes
The tax code is a remarkably unstable thing. Old tax programs come to an end and new programs go into effect. Exemptions expire.
Even the things that the government lets businesses deduct can change in any given year. That makes assembling your taxes on your own something of a fraught experience. Unless you spend a lot of time following changes in the tax code, you always run the risk of making a mistake that will draw unwanted IRS attention.
One of the benefits of a certified public accountant is that they do mind those tax code changes very closely. That means you can feel confident that those kinds of mistakes won’t trigger an IRS review.
Consultation
Entrepreneurs and small business owners must make a multitude of financial decisions. Some may prove easy, such as giving a solid employee a raise.
Others can leave you in a cold sweat, such as thinking about opening a new location or making any large investment. A good CPA can help you evaluate the overall financial risk of the decision. They can also help you develop strategies that will help reduce that risk or at least spread it out over time.
Is a Certified Public Accountant Right for Your Business?
The question of when to hire a certified public accountant differs for every business. Yet, if your business makes enough that you’re not sweating the finances all the time, it’s likely time for you to hire a CPA.
At that point, you’re likely losing money through several channels by not getting the right kind of professional financial advice. A CPA can provide you that expert financial wisdom. Plus, you go into each tax season knowing that your tax paperwork is sound.
Looking for more financial tips or tricks for your entrepreneurial venture or small business? Check out the Finance posts in our Business section.
