From the initial launch of your business to the day-to-day financial decisions helping you to save the most money, there are key times that your business would benefit from a small business CPA. Although some small business owners look for ways to cut costs to generate cash flow for their businesses, some of these decisions may not be the best for the business’s well-being in the long run. Underestimating the experiences of a certified public accountant (CPA) is one of these occurrences. Whether your business is big or small, there are significant advantages to having a CPA on your team. 

Looking for a small business CPA? Contact the Limitless Accounting team!

 

What is the difference between a CPA and an Accountant?

Many people use the terms CPA and accountant interchangeably, however, these can be two different positions within your business. Hiring an accountant does not mean that they have the same qualifications as a CPA. 

Accounting is the reporting of financial transactions, along with storing, sorting, and summarizing the results in a variety of different reports. Anyone who performs these tasks can call themselves an accountant. In fact, to be an accountant, an individual can be considered an accountant with a degree of any kind!

In contrast, a CPA is an individual who has been certified through state licensing requirements. These requirements can vary from state to state, but it predominantly consists of fulfilling educational and experiential requirements as well as passing the CPA exam. Additionally, CPAs are required to complete continued education in order to keep their certification up to date.

 

Benefits of a Small Business CPA

The discipline of an individual who is committed to maintaining their CPA certification suggests that they have qualities and skills that any small business would benefit from. Although there are many great accountants that have not been CPA licensed, most business advisors would recommend a CPA over a standard accountant. 

 

Here are five reasons why you should hire a small business CPA:

Recommendation of Best Business Structure for your Specific Business: Sometimes, hiring a CPA before you launch your business may be beneficial. In the initial phase of starting your business, your CPA will be able to identify the business structure that best suits your business’s needs. Business structure is an important feature of the setup of your business and is the way that your business is identified on legal documents. Whether a sole proprietorship, partnership, LLC, or corporation, how you structure your business is how your business will affect your business’s tax requirements. A CPA will be able to guide you in the right direction as to what business structure will be beneficial to your business prior to its launch.

Provide Financial Guarantee: A notable difference between a standard accountant and a small business CPA is the assurance that your business will have when preparing its financial statements. Although an accountant is able to perform the tasks of completing a balance sheet or income statement, the accuracy of a CPA’s performance is unmatched. It is essential that a business’s financial statements are correct for a variety of different reasons. Precise financial statements are key when it comes to making strategic business decisions. Having inaccurate information can make it difficult to make correct decisions about future investment opportunities. 

Assist During Tax Audits: Tax audits are one of the many hardships of running a business. Having a CPA available to represent your business in situations involving audits can be beneficial. By guiding your business through the tax filing process, these financial professionals also may be able to help you avoid a tax audit all together! 

When Taking Out a Small Business Loan: If you’re looking to expand your business, it may be beneficial to take out a small business loan. A CPA will be able to analyze how this decision will affect your business long-term. He or she will be able to recommend the optimal loan for your business and how taking out the loan will affect the overall cash flow. Additionally, the CPA will be able to help guide you in the right direction when applying for the loan. 

Can Help Your Business Grow: When your business first launches, you probably have goals for its future growth. Over time, the day-to-day tasks of your business will become time-consuming and certain tasks may be forgotten. A small business CPA will be able to relieve some of the pressure of the financial decisions of your business. CPAs are qualified to help with a wide variety of tasks. From forecasting and budgeting to maintaining accurate records, a CPA will be able to guide your financial growth in each stage of your business cycle.

 

Final Thoughts 

Your business’s accounting needs are important, and it is essential that the job gets done right the first time. Not every accountant or CPA will be a good fit for your business. When hiring a CPA, it is essential that they understand the functions of your business, and understand the decisions it will take to help your business grow.

 

Limitless Small Business CPA in Gilbert, Arizona.

Looking for a small business CPA? Limitless Investment and Capital offers a variety of skilled CPAs qualified to assist your business’s needs. Rather than struggling to manage your business’s books, focus your efforts on a piece of your business that only you can. Our goal is to provide you true accounting freedom. Interested in a free financial analysis? Contact us today to get started!