CPAs, or Certified Public Accountants, are a valuable asset to any business. A CPA is more than just a regular accountant—they’ve been licensed through vigorous examination that includes knowledge of tax codes and gives them the ability to represent you before the IRS. They’ll be able to help you with financial planning, analysis, taxes, and more. If you’re wondering whether a CPA is worth it, here are some signs that it might be a great addition for your company:
1. You need help writing your business plan
If writing a business plan is not something you’ve had experience with before (and even if it is), having the extra assistance of a CPA can take your business plan to the next level. They can assist with financial projections and creating a realistic and professional plan for your company.
2. You need help figuring out the legal structure of your business
If you’re not sure whether you want to form an S-Corporation, C-Corporation, or LLC (or even a nonprofit), having a CPA will help you figure out which structure will make the most financial and legal sense for your business.
3. Your business is growing quickly
If your business is undergoing (or has recently undergone) rapid growth, the additional customers and employees you’re now dealing with will necessitate more paperwork and financial analysis, not to mention the fact that now you probably have even less time to deal with the accounting that a CPA could do for you (and more efficiently, too). Also, if you’re looking to expand into another state, a CPA can make sure you’re abiding by the state’s employee and income tax laws.
4. You’re not sure why your profit is stagnant
If your company’s revenue has continued to climb, but your profit has stayed about the same, a CPA can help by advising you on how to adjust your spending in order to increase profit margins.
5. You just don’t have time
Running a business is a lot of work, and while you might think that a CPA isn’t worth the money, stop and think about how much money your time is worth. If you’re spending hours dealing with accounting and deciphering tax requirements, you’re losing hours doing other work that could be bringing in more revenue. If you’re losing out more by doing the work yourself, it’s a good idea to leave the task to someone who is more certified to get the job done.