While having a Certified Public Accountant (CPA) isn’t a requirement to run a business, many companies choose the expertise of a CPA over a regular accountant.
A CPA meets strict requirements to attain their certification, including college coursework and experience, and they must pass a test. Whether or not you need a CPA for your business depends on how much financial insight you need to make decisions, manage your expenses, and plan for the future.
Some organizations will only need the services of a bookkeeper while others can benefit from having a CPA to work with their finances and advise them on smart business moves from a financial standpoint.
Here’s why you might need a CPA for your business and how they can help.
Leverage Financial Information to Your Benefit
If all you need an accountant for is keeping up with your books, you might not need a CPA. However, if you want to use your business’ financial information to benefit your company, a CPA can be instrumental.
A CPA can not only give you tax advice and conduct tax-related services, but they can evaluate the efficiency of your accounting software. CPAs can also audit your financial statements to ensure accuracy and detect fraud.
An experienced and knowledgeable CPA will be proactive about helping you leverage financial information to benefit your business.
For More Complex Financial Tasks
While a regular accountant may provide all the services some companies need, CPAs may be better for certain tasks. Many CPAs specialize in specific areas of finance, which can be useful when you’re looking for a certified accountant with a particular skillset.
For instance, some organizations hire a CPA to audit their financial statements when getting a loan or applying for a grant. Other companies have complex tax needs, or want an experienced accountant to review finances in preparation for a merger.
Hiring a CPA that fits your needs is essential, so when looking for an accountant to conduct a certain service for your company, ensure they have the capabilities to help with your more complex financial tasks.
Get Long-Term Planning and Investment Advice
When you need guidance on planning for your business’ future financial success and stability, a CPA can help. CPAs can be instrumental in constructing long-term goals including minimizing your company’s tax burden, making smart investments, and taking steps now to create a more sustainable cash flow in the future.
CPAs can help you plan for potential mergers and acquisitions and even assist with financial investigations. These professional accountants can represent you when it comes to IRS matters such as audits and collections, so you’ll have an associate to assist you through what can be a stressful process.
Evaluate the Best Fit for Your Business
Whether or not you decide to hire a CPA for your business depends on numerous factors. While not every business will need a CPA, organizations that want the assurance of a professional when making financial decisions can benefit from the services of an experienced accountant.
While startups might decide they don’t need a CPA, they may need one in the future. As your business grows, continue to evaluate your needs and consider enlisting the help of a CPA when the time is right!