Have you been considering the idea of hiring a CPA? Here are the questions you should be asking yourself and some signs you might need a CPA for your small business.
A certified public accountant (CPA) is the cream of the crop in the accounting world. Unlike regular accountants, they are required to pass a rigorous examination to gain their license. To keep that license, a CPA must continue their education for as long as they are in practice. If not, they can lose their license.
This is one of the reasons why small businesses seek out the guidance of a CPA. They can add an extra layer of depth to your finances and really shine light on problem areas or ways to improve for growth.
No matter your business’ size, accounting matters – whether you do it yourself or hire a CPA. We recommend the latter but, if you’re set on handling all your finances and taxes yourself, you may want to read our blog, “Answers to Frequently Asked Questions about Tax Preparation“.
Can You Manage Your Accounting Alone?
While considering if you need a CPA, the first question you should ask yourself is, “Can I manage my small business accounting by myself?” It is likely you’re already doing it alone anyways, or at least with the help of Excel or QuickBooks.
So, reflect on the past six months of your business finances. Have you been able to keep up with documenting expenses, profits, and investments? Were you able to calculate and make your estimated tax payments on time?
Even if you feel like you can keep your books mostly organized by yourself, it might be costing you time. And we all know time equals money in the business world.
Signs You Need a CPA
Your small business needs a certified public accountant if…
Finances Make You Overwhelmed
Perhaps you read that first question above and said, “No. I need help. Now.” We don’t even have to tell you that you should hire a CPA, if your answer was a resounding SOS. Most business owners feel especially overwhelmed during tax season.
You Have No Financial Knowledge
Are you familiar with terms like net profit, margin, and ROI? Having a solid financial knowledge basis will help drive those important decisions in your small business. Luckily, a CPA knows all the definitions and equations for you.
Your Accounts Are Expanding
Growth is exciting. It means more revenue, clients, brand exposure, and all the wonderful things that go along with it. However, expansion usually leads to complex finances. For example, you may have multiple investments across different industries, savings & credit accounts, plus your typical financial reports like profit-loss sheets and income statements.
You Feel Like You’re Wasting Time
Your small business is ready for a CPA if you feel like performing financial tasks is a waste of time. This is a true tell-tale sign you need professional help because you’re aching to expand and spend your hours working on other revenue-generating tasks.
Leave It to the Professionals
If you checked the box on any of the signs above, your small business needs a CPA.
John Freeman CPA offers both Income Tax Preparation and Business Tax Management services for businesses of all account sizes. Call 319-396-5660 for a free consultation.