What a CPA can do for Your Small Business

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When running your small business, at times you can feel lost in a jungle of information, papers, and to-do lists. It can be hard to do it all on your own. There are some things that as a small business owner, you shouldn’t do on your own. Don’t wander lost and confused, a CPA can be your guide to help you navigate the jungle of small business ownership.

CPA, Accountant, or Bookkeeper?

On the surface, it sounds like an accountant, CPA, and bookkeeper are all the same thing. They could be considered the same thing, the same way you could say a pilot and a flight attendant are the same thing. The flight attendant helps the flight go smoothly, but the pilot gets you there. Bookkeepers are great for your short-term finances, while accountants handle the long-term finances. A good bookkeeper can make the accountant’s life easier, but a bookkeeper should not be expected to handle things like taxes and financial planning. Accountants are a general term like doctor is a general term, but CPAs have passes exams and met standards set by the FASB (Financial Accountant Standards Board).

CPA: Certified or Licensed

The accountant may seem like a better “cost effective” deal than the CPA, but that may not be the case. CPAs are certified or licensed to the state’s standards. This means that they not only follow tax laws but continue their education on the subject in order to remain licensed. CPA exams are no easy feat and can require study, apprenticeship, and exams that last multiple days. That extra work means you are getting a true expert, but it also translates into many benefits for your business like, knowledge of tax laws, financial analysis, and audit support.

Tax Law Knowledge

Not every CPA will specialize in small businesses, but they will have more knowledge of tax laws than your average accountant (you can thank those extensive CPA exams for that). An accountant can help you with your taxes but are considered “unenrolled preparers” this means that their ability to represent you to the IRS is very limited. CPAs on the other hand, have tax identification numbers and can represent you more in depth to the IRS. This is like having Superman have your back in a fight. You may think that you could just use one of those fancy tax software programs, but often times those programs miss things, things that could cost you in the long run, like an average of $845.

Financial Analysis

CPAs are the superheroes of the financial world. They can help you set up your small business, advise you through the downturns, help with loan applications, and give you a financial check-up without breaking a pencil. Among the manly things they do, they analyze your finances like there is no tomorrow. CPA doesn’t always mean “best financial advice ever” but it does mean that they have more knowledge and understanding in that field. CPAs are looking out for you. I know one CPA who sat down and analyzed what was more cost effective for blowing noses, toilet paper, or facial tissue, all in the name of making the best financial choice possible. While we won’t look into that for you, you can trust that as CPAs, we love financial analysis.

IRS Audit Support

An IRS audit is the stuff of nightmares. There are few things scarier to a small business owner than an IRS audit, but if you used a CPA, there is no need to fear! CPAs can be your defender to the IRS. As an “enrolled agent” they can help you when it comes to the IRS and taxes. Besides the analyzed reports, they know taxes like the back of their hands and will help with the harder business financial decisions. Are you ready to for a CPA to help you with your business? Look no further than Nguyen CPA. We are just who you want in your corner.

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