When Should You Hire a CPA for Your Business?
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When you are running a business, there is no doubt that you have to be kind of knowledgeable on various aspects of doing so, from the legal ones to finances, staffing and many, many other things. Yet, even though you may have some surface-level knowledge on certain aspects, some things are much better left to professionals. Primarily finances.
This, of course, means that you may need to hire a Certified Public Accountant, or a CPA for short, in order to ensure that your finances are properly managed and that you are doing everything right. These professionals do much more than help businesses with taxes. They also help minimize your risks, provide you with critical insights, and thus help you plan for the future and for growing your business the right way. So, it is no wonder that you are thinking of hiring them.
Yet, you don’t want to make any concrete moves just yet, before you actually get a better idea about when it is that you may need to hire these professionals. There are, without a doubt, various scenarios in which CPAs are necessary, and today we are going to take a look at some of them, hoping to help you get a better idea about when it is that you may want to call in these experts. Without any further ado, thus, let us check out those situations in which you should undeniably start thinking about hiring a CPA for your business.
When You Don’t Have an In-House Accounting and Finance Team
A lot of small business owners tend to handle their bookkeeping and finances themselves or to delegate them to the general office manager. This may work in the very beginning. But when your company starts growing, so do your responsibilities, and managing finances can, therefore, become quite difficult at one point. So, you may want to think about hiring an entire in-house finance and accounting team, or you may want to partner up with a CPA. The latter is the more affordable and the easier solution, and it can save you a lot of time, as well as help you avoid mistakes and ensure compliance with all the laws and regulations.
When You Want to Avoid a Tax Audit
It is definitely clear that no company owner dreams of an IRS audit. And yet, a lot of small businesses can actually unknowingly trigger an audit by making certain mistakes in the process of managing finances. Those mistakes can include everything from misreporting income to claiming excessive deductions. The truth is, though, that you can avoid those audits when you hire a great CPA in your area, because they will be familiar with all the intricate tax laws, meaning that they can easily help you avoid those red flags and thus not trigger any kind of unwanted attention. Furthermore, they will ensure that your records are ready just in case of an audit, and they will represent you in front of the IRS if necessary.
When You’re Behind on Your Taxes
Businesses that are just getting started or that have started growing rapidly can quite easily fall behind on tax payments or filings. Missing those deadlines is much more common than you may think. And ignoring that kind of a situation is only going to make things worse, which is why you need a great CPA on your side to bring all of those records up to date, to set up the payment plans and communicate with the authorities on your behalf, as well as to, naturally, help you avoid having to pay penalties and interest. So, if you’re behind on your taxes, you should bring in a CPA sooner rather than later so as to avoid long-term financial damage.
When You Suspect a Fraud Is Being Committed
If you suspect that someone in your internal team is committing fraud, you will definitely need to act quickly. This can have devastating consequences for any business, and I’m sure you’d much rather avoid that. Bringing in a CPA to conduct a confidential review and uncover any kinds of discrepancies, as well as take some legal steps if necessary, is sure to put an end to any frauds, prevent future ones, and protect your business from legal liability in the process.
When You’re Looking for Outside Funding
When starting or scaling your business, you may start thinking about getting outside funding. Whether you want to get a loan or are looking for some investors, you will need to show that your company is in great financial health in order to get any of that. And, well, professionals such as those at Cambrean CPA or similar companies are sure to be able to help you out with that, ensuring that all your documents are accurate as well as professionally presented. Apart from that, they can also advise you on how to actually improve those key financial ratios before applying for outside funding, as that can make your business more attractive to potential investors or lenders.
When You’re Thinking About a Merger
Are you planning a merger with another company? If the answer is yes, then you will undeniably also need the services of a great CPA to make sure that everything is running smoothly. A merger is undeniably a financially complex move, and you need these professionals on your side to perform due diligence on that other company, to assess the accuracy of all the financial records, to analyze the structure of the deal and all the tax implications, and to identify any kinds of hidden risks or liabilities. In short, relying on a CPA during a merger will protect you from any kinds of unpleasant surprises, as well as allow you to negotiate from a position of strength.
When You Need Strategic Business Advice
When your business starts growing, you will definitely need to form the right strategies to support its growth. And, a great CPA can provide you with strategic business advice, letting you know when it may be the right time to expand, when you may be able to buy new equipment, and similar things. In short, a great CPA will become your trusted business advisor, ready to support your long-term goals.
