Whether you’ve decided to start a new business or you’re ready to take your existing business to the next level, it’s a good idea to enlist the help of a Certified Public Accountant (CPA).
Many new small business owners make the mistake of thinking they can handle all of the financial aspects of their businesses themselves. While the average business owner can handle a certain amount of these tasks, it’s always better to have an experienced professional you can call on. Here are some of the things a CPA can help you with as you grow your business, brought to you by E-City Beat.
There’s nothing more important than starting your business the right way to ensure that all of the systems you set in place contribute to your success.
In terms of creating a strong foundation, a CPA will assist you with the following:
- Determining the best business structure for what you’re doing, such as an LLC or sole proprietorship.
- Analyzing the financial aspects of your business plan.
- Help you choose accounting software that meets your needs.
- Advising and assisting with your business bank account.
- Ensuring that your accounting procedures are in line with government regulations and requirements.
- Ensuring you understand the importance of maintaining separate business and personal expense accounts.
Essentially, a CPA can lay the groundwork for your business finances so that you have a blueprint to follow and refer to as you move forward with your operations.
Once things get going for your business, you’ll need to maintain the accounting system implemented by your CPA. However, you won’t be going at it alone as your CPA can take over the ongoing financial tasks necessary.
Some of those tasks may include:
- Ensuring that the independent contractors you hired are classified correctly by the IRS.
- Keeping you updated on your financial statements so that you have a thorough understanding of the nooks and crannies of your business.
- Overseeing the payroll and payment processes for all employees.
- Advising on the estimated tax payments you should be making throughout the year
- Determining which employees should receive W2 and 1099 forms, and when.
- Reviewing and finalizing your books to ensure that all your paperwork checks out before submitting your business tax returns to the IRS.
While you can do many of these tasks on your own, it’s best to delegate as many as you can to a professional.
When it comes time to grow your business, having a CPA on your payroll can be a critical resource as they can help you manage the entire process.
A few things they can do to support the growth of your business include:
- Helping you determine which areas are prime for growth by providing insight on your cash flow patterns, inventory management, financing, pricing, and so on.
- Advising you on equipment and property leasing and purchasing
- Preventing you from getting audited by the IRS and helping you with the process should you get audited
- Creating financial forecasts and a budget to help you make better business decisions
- Assist you with the sale of your business if necessary
These are just a few ways that a CPA professional can work with you to help your business grow. You can choose to have them take care of all your accounting and financial tasks or just some specific ones that you’re unable to manage. Either way, they’re an asset to small business owners.