As a small business owner, you tend to don multiple hats. From marketing to hiring, the initial months involve you stretching yourself in ten different directions. It’s a really exciting phase! But there is one role that is extremely important, that of a CPA.
Believe it or not – accounting is vital to make the business thrive at a fast pace. Yes, you can use an accounting software but apart from handling the accounts on a basic level – it can only do so much for your business. This is where having a CPA onboard can make all the difference. And here’s how:
1. To take care of your new-born business You need to make sure you set up the operations in such a way that they have a positive impact on the future success. Right from the outset. As a small business owner, there are so many things you have to look out for such as business strategy, bank accounts, government regulations, financing, etc.
A CPA can help you determine the most apt business structure and analyze your plan to see how financially compatible it is. A “numbers’ guy” can assist you on all financial decisions throughout the startup process and even save you money.
2. To take care of your employees Your business will not scale up without the support of your employees. And believe it or not, you are going to hire not only full-time employees but also freelancers. So, who is going to oversee their payroll and payment processes? Who is going to properly classify employees as per their employment contract and make sure they get paid on time? A CPA – it’s part of their everyday work!
3. To make your audits a smooth ride Publicly-owned businesses are required to comply with the Surbanes-Oxley Act (SOX) and private companies that are preparing for their Initial Public Offering (IPO) also need to comply with SOX.
And it is not just one regulation, all business must comply with generally accepted accounting principles (GAAP). Hiring a CPA can assure that your records are in compliance with the appropriate regulations.
4. To fix and maintain a business budget If you want your business to survive and thrive, it is important to stick to the budget even at the initial stage. A CPA can analyze the budget, aid in making the changes and catch errors (if any) to ensure smooth financial operations.
With proper allocation of resources, you will optimize efforts to execute plan and achieve pre-defined goals. There are less chances of wavering if the budget is set.
Looking for a CPA? If you’ve never needed a CPA before, there are a number of ways you can find one that is suitable – you could try the directories or maybe ask associates who they are using. Good luck!