Most small business owners understand that they need to keep their financial records in order. But, they mistakenly start out using the services of a bookkeeper or an accountant in an effort to keep costs low. However, a Certified Public Accountant (CPA) may be more in line with what your business may need.
Don’t let the size or maturity level of your business prevent you from getting the right help that you need. In fact, we have seen many small businesses suffer for not utilizing a CPA when they should have.
If you need some convincing, here are four major reasons why you should seriously consider partnering with a CPA who understands small businesses:
- CPA’s are accountants who passed a rigorous exam to be licensed by the state to provide accounting services to the public. In order to maintain this license, CPA’s are required to comply with continuing education requirements. Accountants, however, do not have to comply with these requirements, and thus may not be as well versed in current laws and regulations that may affect your business.
- CPA’s can represent you before the IRS, while an accountant cannot. This means that if you have chosen to have an accountant prepare your tax return and are audited later on, they will not be able to resolve this matter for you, leaving you to fend off the IRS on your own. Because AEMC is a CPA firm, AEMC would be able to represent your business if you were audited during a tax year in which we prepared. As such, AEMC has a reputation of being of great assistance while representing clients before the IRS and other taxing authorities for help resolving tax issues.
- Most banks, government agencies, and insurance companies require that a CPA attest to or verify your financial reports before doing business with your business. If you enlist a bookkeeper to enter your financial data into financial software and an accountant to create financial reports (balance sheet and profit and loss), you will still need to hire a CPA to certify and attest to the accuracy of the financial records (i.e., compilation, review or audit engagement). AEMC is able to provide such services and offers bookkeeping and compilation services all under one roof.
- CPA’s can perform a more detailed and thorough analysis of your financial reports, as well as provide advice on tax and financial matters. While accountants can provide similar advice, CPA’s hold a fiduciary responsibility to clients and must comply with codes of ethics as required by their licensure with the state. As such, CPA’s typically specialize in a certain areas of expertise and only give advice in their specialization areas, thus upholding their due diligence in serving their clients.
While some people may perceive hiring a CPA as costly, the costs of not hiring a CPA when you should may be more costly than relying on an accountant or bookkeeper. Small business owners are especially vulnerable when conducting business and need the right financial team to help so you can focus on successfully operating and growing your business. If you are looking for a CPA that specializes in small businesses, AEMC is just the CPA firm for you. Learn more about how AEMC compares to the competition, by clicking on the Benefits Comparison link below.
All C.P.A.'s are not the same
When you own a business, it is necessary to work with not just any Certified Public Accountant, but a C.P.A. who specializes in small business. Do your homework and compare your options!
See how we compare!
Thanks for explaining how CPAs can provide more detailed reports because they specialize in particular areas of expertise. My brother wants to get professional financial help for his small business. I’ll suggest that he hire a CPA so he can get more specialized services.
It caught my interest when you told us that a CPA will help represent you before the IRS and other taxing authorities to help resolve issues, which a regular accountant cannot do. I recently opened a retail store, and while I can handle financial records just fine, I’m not quite familiar with tax preparations. I’ll have to consider hiring a CPA to help me out with my business taxes and other paperwork involved.
When you said that a CPA will assist in representing you in front of the IRS and other taxation regulators to help resolve issues—something that a typical accountant cannot do—it piqued my curiosity. I recently launched a retail business, and while I’m perfectly capable of managing financial records, I’m not entirely knowledgeable about tax preparation. I’ll have to think about working with tax services to assist me with my corporation taxes and other related paperwork.