A Certified Public Accountant, aka CPA, is a major player in keeping your business viable and winning. Yet it’s reported that in 2020 only 33% of small business owners employed one.
Let’s go over why that number should be growing.
Do You Really Want to Do Your Own Taxes?
As a business owner, you will have to file two tax returns, personal and business. And no, they aren’t the same. Just because you may know how to file your personal taxes, doesn’t mean you’ll know where to start with your business. If you have employees or customers in other states, chances are, you’ll be even more lost.
A CPA is a tax expert. Come tax season, they’ll be able to prepare your company’s tax documents, file returns, and possibly reduce your tax liability.
Additionally, if your business ever ends up being audited, Your CPA can act as your representative.
All They Have to Offer
While they are tax experts, that’s not all they do. Your company will require constant accounting maintenance that most business owners don’t look forward to doing themselves.
So enters your CPA, who can cover keeping a ledger, setting up an accounting system, forecasting cash flow, preparing financial statements, monthly, quarterly or annual bookkeeping, and maintaining payroll.
In this light, you should minimally have a professional bookkeeper keeping your books, who can liaison with your CPA, and together they can keep your business and taxes on the straight and narrow.
For New Business Owners
Setting up a new business can be daunting for anyone; still, a smart step most people skip, and later have to deal with the repercussions of not consulting with a tax expert beforehand.
While there are so many twists and turns, that it seems purposely intended to trip you up, even still, setting up your business incorrectly can cost you serious money down the line. Money, I know you’d prefer to hold on to.
So, consult your CPA on the legal structure necessary for you, such as a corporation, LLC, or sole proprietor.
Changing the structure later may result in hefty licenses, insurance, and banking fees.
The Bottom Line
Learning how to grow your company is already incredibly tough in its own right. So much so that 20% of businesses fail during their first two years of service, 45% fail during their first five years, and 65% fail during their first 10 years. Only 25% of businesses make it to 15 years or more.
Make things easier on yourself by unloading the weight of all your accounting responsibilities on someone who knows what they’re doing.
It will pay off in the end, when you’re able to take a step back, while the business runs itself.
About The Author
Are you learning to navigate Quickbooks but need a little help? James Wegener, the CEO of The QuickBooks Guy, LLC, is here to guide you every step of the way. With over 20 years of experience in bookkeeping and a deep understanding of financial software solutions, James is the go-to expert for those seeking to optimize their financial operations.
Don’t let bookkeeping challenges hold you back any longer. Reach out today at 678-923-5904 or drop an email to TheQuickBooksGuy@gmail.com.
It’s time to get your books done right!
