Small business owners in Havertown often have concerns about letting an outsider oversee their financial affairs. After all, will an outsourced firm care for its finances with caution? The short answer is yes. Having an in-house accounting team is not just about the extra money but also the management that comes with the decision. Many startups and new businesses rely on experts to handle their financial data, and it is economical and more effective. If you are hiring a CPA in Havertown, PA, here are some things to expect.
Setting the initial foundation
Ideally, you should consider discussing your business plan with a CPA even before you start the launch process. They can guide you on the structure, how you can focus on your cash flow and manage the expenses, and the best ways to finance your business. Getting an accounting firm involved also ensures your personal and business accounts are separate from day one. They can even help with permits, licenses, and other things, and as and when required, they can connect you with other professionals, such as attorneys.
Managing bookkeeping and accounting
One of the many reasons why many companies end up in chaos during the tax season is the ineffective management of financial data. No matter how big or small your business is, you have to spend time on bookkeeping and accounting, and that’s not an easy task. Each payment/invoice is critical, and with a CPA at the helm of affairs, you can have a systematic process. They can even assign a dedicated bookkeeper and help you choose the right accounting software. When everything is managed with caution, you have the required data to file your taxes.
Proactive business tax planning
Filing your taxes on time shouldn’t be your only priority. There are definite strategies and steps that you can consider to reduce tax payments, and that’s where a CPA comes in. CPAs work with small businesses and startups all the time and understand the deductions they can avail themselves of. They can also find opportunities and ways to minimize the burden, and the proactive approach can help save significant money in the long run.
Preparation & reconciliation of financial statements
Annual and quarterly financial statements can give you a clear idea of how your business is performing and other things like cash flow, expenses, and likely discrepancies. Creating these statements requires precise work, and it is also important to reconcile statements with bank accounts. Your CPA can help with all that and ensure your books and ledgers are as clean as possible. If there are things that need attention, they can advise on those, too.
Handling payroll
Payroll is not just about payments to employees. You must calculate wages and overtime and deduct taxes accurately. For a small business with limited employees, payroll taxes may seem easy, but they are still hard to comprehend. Hiring a CPA can relieve your team from the work. They already understand payroll and know every detail, like how to classify employees and calculate deductions and payments.
Financial advice & counsel
Your CPA is your trusted advisor for every matter concerning your finances. Whether you want to expand to international markets, want to acquire a company, or take a new loan, they can give you bespoke and clear advice on how to deal with different situations. Because they know your accounts inside out, they are better versed in explaining the details and consequences of all new decisions.
If you haven’t hired a CPA in Havertown yet, you are already missing out on expertise and experience. Call a firm today and book an appointment to discuss your requirements.
