The Benefits of CPA Firms for Small Businesses

CPA firms are beneficial to small businesses in handling their finances. Although many entrepreneurs prefer the DIY approach to tax and accounting services, it’s not always the best option for the long-term future of your business. As a business owner, it is important to focus on growing the business, increasing revenue, and retaining customers. Hiring a good CPA firm near me can be the secret weapon to a successful business.


Accountant vs. CPA: What’s the Difference?

Accountant is a general term that describes a person whose job is to keep or inspect financial accounts. Accountants follow specific rules and regulations, including Generally Accepted Accounting Principles, also known as GAAP, which are rules and standards set by the Financial Accounting Standards Board.

A Certified Public Accountant (CPA) is an accountant who has met state licensing requirements. Although requirements vary by state, they typically include minimum education (usually a bachelor’s degree in accounting) and experience requirements, plus passing the CPA exam.

Hiring a good Certified Public Accountant (CPA) or CPA firm near me is well worth the expense. Here’s why.


What Can a CPA Firm Do for My Small Business?

#1. Licensure

Since a CPA is licensed by a state they must keep current with tax laws in order to maintain a license in that state. Accountants, on the other hand, are not licensed. A CPA must pass the CPA exam which is an extremely rigorous process with testing over multiple days, including many facets of financial and tax expertise. After they are licensed, CPAs must also comply with continuing education requirements in order to maintain the licenses previously obtained. Accountants do not have any of these requirements, and may not have all the up-to-date knowledge a CPA does.

#2. Legally Structuring Your Business

Is your small business a sole proprietor, corporation, or LLC? A good CPA can offer expert advice on the best legal option and tax implications of these options for setting up your particular enterprise.

#3. Tax Laws and IRS Auditing

A CPA can help the small business owner navigate the myriad of regulations and requirements from not only a federal perspective but state and local regulations as well. While not all CPAs specialize in small business taxes, almost all CPAs are more familiar with tax laws compared to accountants. Having in-depth knowledge of the tax laws is an in-depth part of the CPA’s licensing exam and many CPAs take tax courses every year to keep up to date on the Tax Code.

Additionally, probably the biggest reason to use a CPA for your business taxes is that a CPA is eligible to represent you before the IRS in an audit while an accountant is not. Should IRS auditing ever occur, you definitely need a CPA to represent you, one who is well versed in the audit process and can asset you in working through it. Although your accountant may have signed off on your tax returns, they can not represent you in front of the IRS.

#4. Trusted Advisor

As a business grows and evolves, a CPA firm can act as a strategic advisor by creating or updating the business plan, budgets and forecasts on a periodic basis. As we discussed above, CPAs have the ability to work with attorneys in determining the most appropriate form of business to set up, bankers in obtaining financing, as well as the government offices that regulate small businesses in the country and state.

#5. Applying for a loan

Obtaining a small business loan can sometimes be tough. Your lender will require 100% accurate financial statements. Here, your CPA can work directly with the lender in establishing your qualifications.

#6. Referral source

A small business’s CPA can be their most reliable referral source. CPAs work with a variety of bankers, payroll companies, insurance agencies, attorneys, and human resource specialists. They have the knowledge and expertise to recommend the best for your small business and industry and can act as a liaison between the service and business owner to ensure the best interest of the small business are kept in mind


Why Does My Business Need a CPA

CPAs can wear many hats for your small business. They handle bookkeeping, preparing important financial documentation (e.g., tax documents and profit-and-loss statements), financial planning, and tax filing, among other tasks. As a small business owner, you may find it difficult to handle responsibilities on your own. Hiring a CPA for your business will help ensure financial success, and allow you to focus on something that only you can–growing your business!


How Do I Find the Right CPA for My Business?

Not all CPA firms are structured the same way. When looking to hire a CPA firm for your small business, there are many different traits that you should keep in mind. Here are some ways to get started:

  • Ask for referrals from your small business network
  • Look at the American Institute of Certified Public Accountants directory
  • Determine how much experience they have in your industry
  • Ask for a list of all of the accountant’s services
  • Determine how you and the accountant will communicate, and how often
  • Ask how the accountant bills for his or her services
  • Negotiate fees and costs associated with the accountant’s services
  • Limitless Investment & Capital: CPA firm for Small Businesses in Arizona.


Limitless Investment & Capital: CPA firm for Small Businesses in Arizona.

Limitless Investment and Capital has a team of CPAs in Arizona that specialize in small business accounting and startup accounting.  While working with Limitless Investment and Capital, your small business has the ability to separate the more routine financial jobs from the tax and financial analysis done by the CPA. Our small business bookkeepers are able to handle monthly, quarterly, and yearly financial reports while consulting with our CPAs. Our Certified Public Accountants are able to handle your small business taxes and sign off on your tax return. We are one of the top CPA firms in Arizona, contact us TODAY!