When you own a small business, you intimately understand how much every penny counts. You have to carefully delegate money to each department and make sure that you remain within a strict budget. Paying this much attention to your financial resources tends to affect everything, especially your hiring decisions. Each person is weighed based on what they can bring to the organization because you want to get the most for the salaries that you are dishing out. Although you might not know it, adding a certified public accountant (CPA) to the team can be beneficial in very powerful ways.
1. A Tax Audit Can Break Your Business
Ask nearly any business owner, and they will tell you that there is one word that puts so much fear in their heart that it can become hard to sleep at night: Taxes. A single audit by the Internal Revenue Service (IRS) can deliver such a death blow to your business that you find it impossible to recover. You definitely want to avoid a tax audit at all costs, and a CPA is the person to help you do it.
CPA's keep up with the ever-changing tax laws and stay up to date concerning how much you need to send to the IRS on a quarterly or annual basis to remain in compliance. Trying to run your business while simultaneously staying on track with your tax responsibilities can get hard for even a person who is great with multi-tasking. Having a CPA on the team relieves you from having to do a serious set of tasks that are extremely important to the future of your company.
2. CPA's Maintain The Books
When your books are in order, you can see at a single glance where funds are being distributed. If you currently use outdated bookkeeping methods, your records could be out of order. This can cause serious problems because you might be ordering inventory that is already fully stocked or failing to get the products that you desperately need to satisfy your clients.
A qualified CPA will know exactly which system to use to get your financial affairs in order. They can whip your books into shape so you can look through the records and get a realistic snapshot of your financial health.
Hiring a CPA is a wise investment that can pay you back with major dividends. Start interviewing potential CPA's and find the one you feel will be the best fit for your brand.