Many people have a misbelief that Certified Public Accountants (CPAs) are only necessary for large businesses and individuals with a huge income and several resources.
While it’s surely true that CPAs provide aid in such circumstances, the fact is that they help businesses and individuals with much more modest incomes too. Moreover, CPAs have the expertise to help a broad range of customers with diverse incomes and financial conditions.
Wondering what CPAs can do for small businesses? Here are a couple of things that may raise your eyebrows.
Cash Flow Management
CPAs oversee where the cash is going by designing a monthly cash flow statement. After completing the report, CPAs go through the cash flow statement with the small business owner and discuss possibilities of cost-cutting or more (necessary) spending.
Also, CPAs help small businesses with meeting payroll or during unexpected expenditures. They help them acquire lines of credit (LOC) that help with start-up spending and help their business fulfill small and long-term targets.
Support during Tax Season
Tax season is nerve-racking for every small business owner, no matter how organized they are. Filing the taxes is pretty complicated, and if not careful, can lead to a mistake through the process. This is where CPAs come in.
CPAs prepare the business tax documents, file the return, and even advise small businesses about reducing the tax liability. Also, they’ll be aware of any tax changes and act as a spokesman if the business is audited.
Setting up the Business Structure
There’re numerous business entities, and CPAs can help pick the one well-suited for the business. They know what tax norms apply to each of the business types and prepare the taxes accordingly.
As the organization grows and expands, there’s a good chance of changing their entire business structure if they kick-started as a limited liability company (LLC) or sole proprietorship.
In such cases, CPAs can run through the paperwork and help the organizations make the required changes.
Preventing Audits
Being audited is a concern for every small business. It can still be anxiety-inducing even if the business owners know they haven’t done anything wrong and that the situation has perhaps stemmed from a minor miscommunication or error.
Want to reduce the chances of getting audited? Hire a CPA! And if the small business does end up getting audited, their CPA will help them make it through the procedure without taking a blow to their reputation and revenue pool.
Final Words
Small business owners have a lot to deal with, and working with a CPA specializing in helping entrepreneurs can free up lots of hours. They can simply turn to CPAs for assistance rather than worrying about giving paychecks off on time, creating accurate business forecasts, and filing the taxes properly.
With the right small business CPA, organizations can enjoy peace of mind when it comes to their company’s finances.
Miles Education is a premier training institute for finance & accounting professionals looking to earn US CPA credentials. The focus of Miles Education has always been to up-skill students and professionals to help them be future-ready and enable their career progression through the US CPA qualification.
Committed to achieving this goal, today, Miles is the largest International CPA Review! It has been instrumental in building India’s CPA ecosystem, holding offices in 20+ cities and partnerships with 170+ MNCs, including the Big 4s. Miles Education provides student/professional-centric services while keeping concept-based learning at its core which has helped it climb to the top ranks in the US CPA course in India.
