If you are wondering whether you need an accountant for your small business, Partridge & Associates CPAs can help! When most people think about an accountant, they immediately think about accounting and bookkeeping. However, accountants do so much more than number crunching and can help with the growth of your small business. Know when to hire an accountant or CPA and what an accountant can do for your small business here.
Do I Need An Accountant For My Small Business?
You will need to hire an accountant:
1. When You Need Business Tax Preparation Services
Hiring an accountant for business tax preparation or small business tax preparation is a great idea because it can save you time and money vs performing tax preparation yourself. Also, an accountant will make fewer mistakes ensuring your tax filing goes smoothly.
2. When You Need Help Writing A Business Plan
An accountant can use accounting software to create financial projections as well as other reports. These reports can help you create a plan that’s more likely to succeed. Hiring an accountant at the early stages of business planning means you will benefit from their advice right from the start.
3. When You Need Help With Business Formation
There are different types of legal business structures to choose from including LLC, Corporation, Sole Proprietor, and more. An accountant can help with business formation and choosing the right legal business structure that best suits you.
4. When You Need Help Understanding Your Financial Situation
An accountant is key when measuring business metrics such as the ratio of total revenue to ratio of expenses, etc. Being able to see all of these charts and tables at a glance can help you keep track of, or monitor, important things like cash flow.
5. When You Need To Concentrate On Other Aspects Of The Business
Hiring an accountant to worry about finances can take a lot of stress off your shoulders. Most people want to have control over their finances but learning to trust a professional accountant with that task can let you focus on other aspects of the business.
6. When You Need Help Dealing With The Government
Dealing with the government can be a daunting task. A good accountant can make your life simpler by completing and filing compliance and legal documents, keeping you up to date with tax laws, preparing annual statements, handling payroll, maintaining important records and more.
7. When You Are Being Audited By The IRS
Audits can be expensive and time-consuming. An accountant can help with the audit process by giving you advice, making sure you didn’t violate any tax laws, and more. Hiring an accountant after you get audited is good, but having one beforehand might prevent you from being audited altogether.
8. When You Apply For Business Loans & Overdrafts
A good accountant can improve your chances of getting loans or overdrafts. Your accountant can use their accounting software to present facts and figures to the lender to back up your application. They can also answer questions about revenue, expenses, and projections.
9. When Your Business Is Growing Quickly
It’s important to hire an accountant if your business is growing very quickly, you’re hiring a lot of new employees, or taking on more space. An accountant can look after utility payments, property tax, employee taxes, payroll, and more. They can also provide financial analysis to provide insight on growing your business properly.
10. When You Are Buying A Business
If you are buying a business that is already up and running, it’s a good idea to hire an accountant because they can help you look into the company’s financial accounts to make sure everything is accurate. They can find out about a company’s assets and whether they have any outstanding debt you should be worried about.
11. When You Are Selling A Business
A good accountant produces statements of accounts and puts your financial records in order to show your prospective buyers. They can put together useful tables and charts to structure your affairs so you get the maximum amount of money from selling your business.
12. When You Want Peace Of Mind
The biggest advantage of hiring an accountant is the peace of mind you get from knowing your financial situation is being handled by a true professional. Just like you are a master at what you do, an accountant is a master at keeping your financials on point.
Do I Need A CPA For My Small Business:
You will need to hire a CPA:
1. When you need audited financial statements
An accountant can only prepare compiled financial statements. A CPA can prepare audited and reviewed financial statements. This is especially important for public companies as they must produce audited financial statements.
2. When You Need A Certified Professional
Don’t take your chances with just any accountant. Hiring a CPA ensures you are dealing with a trained professional that has experience and meets state licensing requirements. State licensing requirements typically include getting a degree, having plenty of experience, and passing a CPA exam.
Read more reasons why you need a CPA.
Partridge & Associates Are The CPA’s For You
Our CPA firm has over 35 years of tax and accounting experience and has served thousands of businesses and families throughout the Scottsdale and Phoenix areas. We are proud that our CPA firm has the highest standards of education, training, and expertise available. We are pleased to say that we are one of the most creative and dynamic CPA firms in tax planning and strategies.