All CPAs are accountants but not all accountants are CPAs
By: Rachel Covington
Most business owners have some type of system for keeping track of business finances. Whether it be hiring an accountant or even worse, doing it yourself. Unless you are a trained accountant, you should hire a licensed Certified Public Accountant. This is different from a basic accountant because a CPA is licensed. CPAs must stay current and up to date with tax laws and are required to pass a vigorous licensing exam, dependent on the state. Proper accounting is a surefire way to keep your business organized and profitable. Still need convincing? Here are 4 reasons that will urge you to hire a CPA today.
- Be prepared for IRS audits – CPAs can represent you in the event of an audit, accountants cannot. They can also help you avoid mistakes when filing taxes, so you are less likely to be audited.
- Save time, effort, and money – Making too many mistakes throughout the year can be extremely costly for your business. A CPA can help you by easily identifying potential deductions, give you beneficial advice on strategic business decisions, and make sure every penny is accounted for, so you don’t lose money. Not to mention, they give you the opportunity to focus on your business, so you do not waste time incorrectly managing your business finances.
- Get a strong, financial analysis – CPAs constantly keep tabs on business finances. They can help with budgeting and monitoring cash flow, so you are always prepared. Sometimes it’s better to have a professional set of eyes look at your business from the outside, in. A CPA is trained to offer the best tax and financial advice. CPAs also offer a more thorough analysis than that of an accountant.
- Plan for future growth – Having a CPA gives you the ability to logically plan for the future of your business. Since they closely monitor your business finances, it’ll be easier to smartly, budget for your business. Knowing when to buy inventory, save more, and invest, will help your business succeed.
Overall, a CPA will truly benefit your business. Honestly, while running a business 24/7, who wants to spend their valuable time trying to figure out the correct way to manage business finances? Especially when any small mistake could cost you hundreds or even thousands of dollars? A CPA has more credibility and truly are experts in this field. Also, they can file your taxes; business and individual. You’d be surprised how much slips through the cracks so, if you haven’t already, you should get serious about hiring a CPA for your business financing needs.