The number one reason small businesses fail is due to cash flow problems. In addition to the threat of closure, cash flow problems can mean being unable to pay yourself, employees, vendors, or loans.
If even the phrase “cash flow problems” makes your stomach squirm, you might benefit from hiring a small business CPA. A certified public accountant, or CPA, is a licensed professional that can analyze and optimize your small business’s cash flow.
What is a CPA? A Certified Public Accountant is an accounting expert who has passed the CPA exam and met state licensing requirements through educational training and experience. CPAs can offer more services than enrolled agents or accountants. These services include:
- Computing business taxes
- Representing the business at tax audits
- Managing payroll and payroll taxes
- Preparing financial statements
- Analyzing financial statements
Small business owners can significantly reduce their expenses and improve financial prospects by working with a CPA.
Reasons to Hire a CPA for Your Business
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CPAs can set up and organize your financial information
Businesses owners can entrust a CPA to prepare and audit financial statements. CPAs have the training and specialized expertise to detect inconsistencies or problems within the recorded statements, which lessens the risk of financial errors. A CPA can also choose the appropriate software to meet the needs of your business, whether you require financial reports, streamlined filing processes or easy access to your client data.
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CPAs provide accurate financial consulting services
Small businesses can’t afford to make mistakes with their finances, which is perhaps one of the most persuasive arguments for hiring a CPA. A CPA can analyze your financial records and streamline tax elements that would lead to a tax audit. They are authorized to offer financial advice because of their prestigious expertise on the subject, and can make data-based decisions to benefit your business based on your financial goals.
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CPAs can assist with improving your credit score
A low credit score doesn’t have to be notably low to stand between opportunities for you and your business: it just has to be unimpressive in comparison to your competitors. Unfortunately, the curse of a low credit score can follow you for a long time and be difficult to get away from. CPAs can identify functional strategies for your business to continuously improve credit ratings. Remember, good credit means more open doors.
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CPAs can help with payroll management
Poor payroll management is essentially a message to your employees that they are not a priority to the company. As a small business owner interested in retaining employees and keeping a high morale, this is definitely not the message you want to send! CPAs are knowledgeable about payroll accounting systems, so they can guide small business owners throughout the relevant processes. They can also help ensure that payroll tax obligations are met and employees are paid on time.
Let Us Help You
At Palma Financial Services, Inc. we specialize in accounting, tax, and financial planning for individuals and businesses. With two decades of service to the larger Dublin area, our family-owned business’s primary responsibility is providing excellent service while building lasting client relationships. Get in touch with us by phone or email.
