You’re the CEO of a thriving small business. In fact, your business might be growing so fast and you’re making so much money that it’s time to hire someone to keep track of that money. Perhaps you need the services of a Certified Public Accountant (CPA).
But what value can a CPA bring to the table (other than the obvious)- and how do you know it’s time to hire one to support your growing business? Let’s take an incisive look below.
How Is the Right CPA Critical to a Growing Business?
Many small business owners don’t realize that an astonishing 80% of US businesses fail within the first year and a half of inception. Oftentimes, one of the main causes is poor money management.
If you are looking to avoid this all-familiar trap, then it’s prudent to hire the right CPA. While the main job of a CPA is to handle accounts, the right one can wear many hats for your growing business. They can handle a variety of other important tasks like tax planning, bookkeeping, and consulting.
Here’s a general breakdown of responsibilities you can expect from the right CPA:
Tax planning, filling, and advice- CPA are precisely trained to handle all of your business’s tax requirements.
Accounting- Cash flow can be a huge concern for any growing business. That’s why you need a CPA to help track, record, summarize, assess, and report on your business’s financial transactions.
Bookkeeping- The right CPA not only records your financial statements, but also ensures that these records are correct, up-to-date, and comprehensive.
Consulting- A qualified CPA can provide sound advice on financial risk management, budget, and other complex financial matters.
Signs You Are Outgrowing Your Business CPA (Or Need a Different One)
In your quest to manage your growing bottom line, you might have already hired a CPA. However, sometimes change is inevitable to ensure you get the possible advice and financial service.
Here are 5 telltale signs that you need an upgrade to your current business CPA:
Your Business CPA Doesn’t Think Outside The Box
Qualified accountants handle day-to-day logistics competently enough, but they don’t always give you the strategic financial planning you need to keep growing.
Finances require both a fine eye for detail and far-reaching vision that allows your CPA to plan ahead of time. Your calendar already contains in-built financial planning milestones and recurring functions including payroll and tax filing deadlines. If your existing CPA is not preparing well ahead of time of these dates and reducing the impact of charges, it might be time to hire a different one.
You Get Excuses and Referrals, Not Answers
Normally, your accountant should be ready and willing to listen to you whenever you need financial advice. That might not always be the case. But at a top-notch CPA firm, you get concrete answers, not excuses or lethargic responses. You get called back right away and speak with a partner, not office personnel or assistants.
Some accountants specialize in areas that don’t solve your pain points, leading to referrals to other financial experts who might or might not be a good fit for your business. Referrals within the CPA space can be a helpful or even necessary way to give you the best possible service or advice, but it shouldn’t occur without consulting you and getting your approval.
You Get Little or No Guidance
Part of a CPA’s job is to provide year-round guidance on matters pertaining to income, tax, and expenses. If this is not happening, your business might encounter deeper problems down the road. If your current CPA is merely filing your taxes and not offering any robust advice, it might be time for an upgrade.
You’re Paying Far Too Much
Managing your finances shouldn’t cost a pretty penny- especially if you’re a growing business. If you think you’re paying premium fees for otherwise ‘normal’ financial services, it is time to shop around. Look for a CPA firm that offers a variety of solutions with no tie-in charges, enabling you to pick one that falls within your budget.
Your Accountant Rattles You Off With Endless Jargon
Truth be told, the accounting world is full of curious and often baffling jargon. But if your CPA uses this to their advantage by spitting jargon in the hope you’ll get confused and simply pay their invoice, you’re better off with a different CPA firm.
Your Work With a Financial Planner- Not Really a CPA
If you’re currently working with a financial strategist but paying rates for a Certified Public Accountant, it might be time for a change.
Accountants typically have a bachelor’s degree in a finance-related field, usually management or accounting. To be certified, they follow it up with a demanding exam. Continuous education is key to maintaining certification, and a financial strategist who’s not a CPA might lack the incentive to keep up with studies. Spending your hard-earned money on someone who deeply understands the current tax laws makes perfect financial sense.
Your Accountant Overlooks Tax Deductions
Accountants should act promptly to take advantage of all tax credits or recommend tax deductions. If you feel you are missing out on tax credits or deductions, it might be time to switch to a new CPA. Your accountant’s job is to keep an eye on your finances, and should be doing everything feasibly possible to reduce your tax burden.
Wrapping Up
Finding the right CPA for your business is of paramount importance. If you’re serious about taking your business to the next level, you want to find an accountant who’ll help you in similar ways a trusted advisor would. You want someone who can guide you on accounting, bookkeeping, taxes, and financial risk management so that your business can thrive while remaining fiscally healthy.
Need help finding the right CPA? Get in touch with BradyRenner today to learn more. You work hard-and you deserve to reap the benefits. Let one of our certified public accountants help get you there!