The business landscape is constantly changing and small business owners often find themselves juggling multiple responsibilities. From managing daily operations to increasing sales, business owners wear multiple hats. However, one hat that no small business owner should underestimate is that of a Certified Public Accountant (CPA). In this article, I hope to highlight the invaluable role of a CPA and why every small business should consider their services.
Time and Stress Savings
Having a CPA on board allows small business owners to focus on what they do best – running and growing their business. Delegating financial matters to a professional not only saves time but also reduces the stress associated with managing complex financial issues independently.
Financial Expertise in a Complex World
The financial aspects of running a business are perhaps the most challenging, with complex tax codes, regulations, and financial strategies evolving year by year. A CPA is a financial expert who specializes in navigating this intricate financial terrain.
Tax Compliance and Optimization
One of the most identifiable contributions of a CPA to small businesses is tax compliance and optimization. Tax laws are not only complex but also subject to frequent changes. Filing taxes incorrectly can lead to penalties, audits, and lost opportunities. CPAs stay updated through Continuing Professional Education on tax regulations, ensuring that businesses pay the least amount of tax they are legally obligated to. Look for a CPA who offers tax planning as a way to proactively optimize tax strategies to maximize tax savings.
Financial Planning and Budgeting
With guidance from a CPA, businesses can make informed decisions about investments, expansion, and cost-cutting measures, ultimately leading to long-term financial stability. Recently, one of my business clients called asking my thoughts on whether they should expand to add two additional pieces of machinery to their business operation. We worked to update their cash flows and tax projection while taking in to account the expansion opportunity. As a result, it was best for them purchase one piece of machinery in the current year and the other at the beginning of next year to optimize their cash flow as well as take advantage of depreciation deductions. This is a small example of the value CPAs offer to their clients.
Financial Transparency and Reporting
Transparency is crucial in the world of business. Small businesses need to provide accurate financial statements to investors, lenders, and stakeholders. CPAs ensure that financial statements are prepared in accordance with required accounting standards. This consistent application of professional guidelines helps to instill trust in markets and assists with securing financing and attracting investors. We recently worked with a small business client to prepare a set of financial statements that allowed them to consolidate their debt and obtain a more favorable interest rate.
The importance of a CPA for small businesses cannot be overstated. They are more than just number crunchers or bean counters. While some may see hiring a CPA as an added expense, it is, in fact, an investment that pays off through financial stability, tax savings, and peace of mind. Small businesses looking to prosper in today’s competitive market should consider enlisting the services of a qualified CPA to ensure their financial success.
Published in the Victoria Advocate
Kyle W. Noack, CPA/CFP® is the Chief Executive Officer for Keller & Associates CPAs, PLLC and KMH Wealth Management, LLC.