Does My Startup Need a Professional CPA?

GoPuff recently acquired a little over $1 billion dollars in funding! How were they able to rise to the top so quickly?

The founders of GoPuff understood that they had to focus on their customers from day one. They always exceed consumer expectations by providing 24/7 service and super fast deliveries. They even stay active on social media.

It’s an easy bet that the founders use a professional CPA to help with their financial needs. Instead of worrying about tax documents or being in compliance, GoPuff business owners can focus on keeping customers happy!

If you’d like to spend less time stressing about finances, and more time growing your company, then this article’s for you. Should you hire a CPA to help your company? Read on to find out.

What Does a Professional CPA Do?

What exactly is a professional CPA, and what do they do? A CPA is a certified public accountant that can help business professionals and clients alike. After meeting the minimum education requirements, someone applying to be a CPA must pass a rigorous exam.

CPAs also have to abide by a high code of ethics. The professional designation is one of the most sought-after and versatile credentials for accountants across the country.

CPA Services

When you hire a CPA to help with your small business, they’ll be able to assist with tax services, assurance services, audit services, and management services. There are also specialty fields such as consulting, forensic accounting, international accounting, and environmental accounting.

You’ll find that the best CPAs have analytical research skills, making them valuable assets for your company. When you combine the interpersonal skills and tech-savviness that CPAs bring to the table, you’ll be giving yourself a competitive edge.

You will have access to abroad business perspective, but you’ll also have assistance with project management. From the smallest startup in its first year to the most central government agency, every organization can benefit from the skills of a CPA. However, if you’re just starting out, you might not be sure if it’s the right time to hire a CPA.

Signs It’s Time to Hire a CPA

How do you know when it’s time for your business to hire a certified accountant?

Hiring an accountant is a significant step for any company. It can be one of the moments that turns a small venture into a thriving business. Nevertheless, it helps if you know exactly when to make the hire.

One of the first signs you need to hire a CPA is if your bookkeeping is becoming too demanding. When bookkeeping takes up too many of your resources or too much of your time, you need outside help. A CPA will be a bookkeeping expert, but they’ll also be able to help create a long-term bookkeeping business plan.

Are your taxes not as efficient as they should be? That’s another sign that it’s time to hire a CPA who can assist with tax preparation.

As your financial life grows more complex, your tax returns will become more detailed. If you’re not careful, you can miss exceptional tax-saving opportunities or unique strategies financial strategies.

Is your company expanding at an exponential rate? Business growth is tremendous! However, if you don’t respond correctly, your company could start to shrink before you know it.

Expanding a small business is all about having the right team in place. A CPA can be the perfect quarterback for taking your company to the playoffs.

Finally, if your revenue is outpacing your profit, you’ll definitely need to hire an accountant. A certified public accountant will be able to find out what’s causing the overspending, so you don’t go out of business.

First Year Bookkeeping for Small Business

Bookkeeping services for small businesses are essential within their first year. While you’ll be giving yourself an extra expense upfront. However, you’ll be able to enjoy a tremendous return on investment.

A CPA can help get all of your accounting tasks in order from day one. When you know that everything is running off of a smooth foundation, you can feel good about your company’s finances.

The first year of business can be intimidating. Your risk of failure can be exceptionally high if you’re in a different competitive industry.

You might feel like you’re constantly fixing problems, and there will never be enough time. Having a strong business plan in place is one of the only ways startups can survive.

Do you already have a plan? Great! A CPA can review your business plan to check if it aligns with your long-term accounting strategies. You’ll also enjoy seamless account integration, saving you a ton of time.

As long as you’re working with a CPA that uses modern cloud accounting software, you’ll have a jump start from day one. The best CPAs will also provide you with frequent updates so that you’ll be able to keep a pulse on your company’s finances. If you don’t understand cloud software, this article provides simple insights.

What type of accounting tasks will your CPA assist with during the first year? Talk to your CPA about different options for tracking your expenses and setting up an invoicing system. You’ll also want to explore the various accounting and bookkeeping systems that the CPA is willing to work with.

Requesting Internal Audits

Did you know that CPA firms can perform audits? Not the type of mandatory audits that the IRS performs.

During an audit, a CPA will be able to investigate your financial data. Once they have all of the data available, they can analyze the information to understand your company’s financial reports. An experienced CPA will be able to identify areas of improvement for your company’s internal control processes.

The type of audit that a CPA will perform depends on the size of your company. If you have a small business, the CPA will probably test the number of client transactions. You can expect the firm to request a bank reconciliation and a complete list of your company’s fixed assets. You’ll also need to provide your CPA with analytics, budgets, and payroll records.

Once the CPA has access to all of this information, they can piece together the bigger picture. Wisely designed internal controls will allow your company to grow.

Since you’ll be making intelligent decisions based on detailed audits and reports, everybody wins. The bank investing in your company, employees, and clients will all benefit from a CPA audit.

Maintaining Compliance Measures

Along with audits, CPA also assists with compliance measures. Compliance can be one of your company’s biggest competitive weapons in the marketplace. A trusted CPA will be able to ensure that your business prevents fraud and continues to improve transparency.

Transparency means that you’ll have clear insight into your company’s financial performance. This clarity will make it easy for you to stay agile among competitors.

Instead of worrying about financial reporting, you’ll be able to rest at ease knowing everything is 100% accurate. Your CPA will have clear and defined processes for recording and verifying all sources of revenue.

CPAs will also be able to assist with procedures for documenting assets, liabilities, and expenses. When you follow all of the financial reporting rules, your company will be in 100% compliance.

Expert Consulting Services

Did you know that a CPA can also function as a consultant? They’ll be able to assist you with all sorts of financial matters, including your budget!

Keep in mind that CPAs will be limited when providing investment advice. If you’re looking specifically for investment advice, you’ll need a CPA licensed as an investment advisor. There are also rules about registering with investment advisors before getting information.

However, when dealing with a standard CPA, you can get advice from day one. The second you call a CPA, you’ll be able to gain knowledgeable insights about your company’s taxes and financial opportunities. Sites like https://finvisor.com/ help you set up consultations online if you don’t want to call.

For instance, are you having difficulty making a budget for your startup? Let your CPA take the stress out of the budget planning equation.

Using advanced digital tools, a CPA can create a budget and forecast that lets you see exactly where your company is headed. Be sure to communicate all of your company’s goals so that your CPA can generate a flexible budget and forecast.

Prevent Embezzlement and Fraud

There are so many different ways that fraud can occur within your company; it’s scary to think about. Thankfully, a well-versed CPA can act as a crime fighter, keeping your company safe.

When you hire a CPA, you’ll be able to enjoy a one-stop-shop for all of your bookkeeping needs. Having all of your accounting functions in one place will make it easier to notice if fraud is occurring.

For instance, let’s say that a small business owner decides to separate all of their bookkeeping functions. They’re processing client payments and handling client receivables in entirely different departments. When accounting systems are separate and spread apart, it’s easy for fraud cases to take place without ever being noticed.

The alternative is to have a trusted CPA held to the highest code of business ethics and morals. Since they’ll have access to all of the accounting information, your CPA will be able to instantly notice if anything is amiss. By creating and maintaining internal controls to detect fraud, you’ll be able to keep your company safe.

For instance, a CPA can keep unauthorized employees from accessing financial data. You can even find a CPA who will help you set up a multi-person sign-off for expense reimbursements.

Taking Advantage of Tax Breaks

Hiring a CPA to perform your taxes can save you so many hours, not to mention a few headaches. Did you want to save some money too? A CPA can help identify tax credits and deductions you didn’t know about.

The truth is that tax preparation is a complex process. Taxes are probably going to stay complicated for quite some time.

When you own a business, doing your own taxes puts you at a significant disadvantage. You might miss out on all sorts of opportunities to document legitimate expenses. If you don’t document costs the right way, you’ll pay out of pocket when you don’t have to.

Qualified accountants will identify all sorts of exciting deductions you’ve never considered. For instance, you can deduct specific car, food, and even clothing expenses.

Your CPA will also determine exactly how much your tax payments should be for the current tax year. Forecasting your tax bill will make it easier for you to create an annual budget.

If you’ve already completed your taxes for the year, let your CPA review them. They’ll be able to identify any potential errors so you don’t overpay for your tax return. If anything should pop up with the IRS, you’ll also have instant audit representation.

If something happens and an IRS audit is inevitable, your CPA can protect you by providing representation. Only a CPA will be able to represent you in case of an audit, not a tax preparer.

CPAs can help you with backdated finances too. If you have any concerns about the last few years of your bookkeeping, give your CPA your old tax returns. They can help make amendments, even when it’s not within the tax year.

Have a Financial Head Start

Hiring a professional CPA gives your company a financial head start. You’ll be able to identify unique tax break opportunities to come out on top. If your company is just starting, a trusted CPA can also help you develop a strong financial strategy.

Start calling CPAs near you today to set up an initial consultation. Make sure you find someone who works with cloud accounting software since it’s incredibly convenient. For more convenient tips, just read another one of our articles.