Small business owners have multiple responsibilities and often juggle many tasks simultaneously. They are responsible for the vision of their ventures, must have complete control over operations, and should have a role in managing marketing and client relationships. While all of that is critical, you cannot afford to overlook the need to manage the financial affairs of the business. It is more than just keeping track of transactions, and if you are wondering whether you should hire a CPA in NYC for your small business, here are some quick insights.
A CPA is more than an accountant
First, let’s discuss the difference between a CPA and an accountant. An accountant has a degree or certificate in accounting, and they can handle bookkeeping, preparation of financial statements, and some tax-related work. A Certified Public Accountant (CPA), on the other hand, has completed a rigorous licensing process and specializes in a wide range of things, including tax law, auditing, financial planning, and consulting. Many accounting firms are led by CPAs who work extensively with bookkeepers, payroll experts, and accountants to manage work for multiple clients.
Reasons why you need a CPA
- Tax planning & preparation: Yes, you should ensure business taxes are filed on time, but have you considered using practices and strategies to bring down the tax burden? That’s where a CPA can come in handy. Besides taking care of compliance and regulatory matters, they can identify deductions and make the most of available ways to keep taxes in check. Also, you don’t have to keep a check on changing tax codes and other laws.
- Financial reporting & drawing information: Ensuring you create accurate and regular financial reports is non-negotiable for profitability. Besides financial reporting, your CPA is elemental in analyzing the statements and giving details of your company’s performance. They can offer valuable details on how your business can do better find ways to cut down expenses and plan for future growth.
- Strategic consulting: CPAs also double up as financial consultants, offering ideas and insights on how to run your business better. While number crunching is a part of their job, their experience and guidance can change the course of your small business. Whether it is about getting a new loan or expanding your company, they know the smaller aspects and suggest accordingly.
Qualities that matter
Finding a CPA for your small business requires extensive homework. You need to check both for a successful track record and vast experience, especially when working with other small businesses. If this is an accounting firm, check the comprehensive suite of services they offer and how often you can communicate and get advice from the CPA leading the team. Ideally, seek a blend of tax planning advice, compliance, strategy, and management of entire financial affairs. Industry-specific experience is also relevant because a CPA who has worked with other companies in your industry can offer bespoke solutions and is likely to be aware of the usual challenges.
Working with a CPA
If you are wondering how to start working with a CPA, the first step is identifying your requirements, the challenges you wish to address immediately, and how you intend to collaborate. You would want the accounting team to offer advice when you need the most, but the extent to which they will be involved depends primarily on you. Select someone who is responsive, has the time, and doesn’t mind answering the tough questions. You also need to be transparent about your finances if you want tailored and strategic advice.
You can shortlist CPAs in NYC through online listings or references from other business owners. Start your search NOW!
