Most small and new business owners think they wouldn’t need the services of a CPA until they’ve already grown their business. After all, the size of their business is such that they think they can manage everything on their own.
However, this could be the kind of mindset that prevents your business from growing to its full potential. Being able to handle your finances for the sake of tax filing is one thing, but actually having a clear idea of how your books actually look like is entirely another.
Having a full account of your profit vis-a-vis your expenses is something that could give you better opportunities at improving your workflow, overall strategy, and operational efficiency. You can bet that hiring a CPA to do your accounting work for you can help you achieve your goals faster.
Ensure Compliance
One of the most common issues new companies have to deal with pertain to their compliance with certain government standards and regulations. For example, in order for you to be able to pay your correct tax due, you should know what kind of business structure you have. Are you a corporation, an LLC, a partnership, or perhaps a sole proprietorship?
Your accountant, can assist you in identifying the kind of business you’re running. Having correctly identified under what category you fall into should then give you a clearer picture of what kind of compliance requirements you should meet.
While you’re at this stage, it should also be a great idea to go over your business plan with a CPA. Consider this as your blueprint for how you would like your business to grow and develop. These let you handle not only your current business operations better, but more importantly, projects how viable your current business direction is.
Maximize Technology
A CPA can provide you with an accounting software that will help you stay on top of your business transactions. From independent contractor to company payroll, payment processes and estimated tax payments, you can have better transparency when it comes to your finances.
With you being regularly updated on your books and accounting, it should be a lot easier for you to close out your books and then generate a financial report that accurately reflects your business’ financial standing, which also helps prevent IRS audits.
As a growing business, having an IRS agent pay you a visit with questions about the accuracy of your tax filings is the last thing you need. Avoid this hassle and do your business the right way from the start with the help of your own accountant.
Nashville accountants from firms such as Evan Hutcheson, CPA, LLC can help you with your accounting and bookkeeping needs.
Sources:
Ways an Accountant can Help a Small Business Owner. The Balance.
When to Hire a Bookkeeper or Accountant. Entrepreneur.
How a New Tennessee Online Sales Tax Rule Increases the Importance of a CPA Firm
