Running a small business requires a lot of time and expertise. Managing the company's finances is one of the most important administrative tasks any small business owner will face.
Few people have the knowledge and experience needed to work with business finances successfully. You may think that hiring a part-time accountant is adequate, but what your small business really needs is the help of a Certified Public Accountant (CPA).
1. Maximum Financial Knowledge
Any financial mistake that a small business makes could spell disaster for the company. Small businesses typically run on narrow profit margins, so all financial decisions must be sound ones.
An accountant isn't required to have any formal training or education. A CPA must meet strict state qualifications in order to become licensed. CPA candidates must pass a grueling exam that is administered over the course of several days. This exam covers all major aspects of finance, making a CPA one of the most knowledgeable financial professionals available to your small business.
2. Current on Tax Laws
All business entities must file taxes each year. Small businesses need to take advantage of every write-off and deduction in order to minimize their tax burden.
A CPA will be well versed in the most current tax laws that apply to your state. Every state requires that a CPA review and understand changes in tax laws before their license can be renewed. This requirement allows you to rest assured knowing that as long as your small business works with a licensed CPA, you will have access to a valuable wealth of tax knowledge.
3. Up-to-Date Education
Another important reason your small business should work with a licensed CPA is the ongoing education these professionals invest in. Each state has its own continuing education requirements that must be met in order for a CPA to retain their license. Courses that qualify for continuing education hours provide instruction on the most up-to-date technology and practices used in the accounting industry. A CPA professional will be able to bring that knowledge to your business in order to streamline your accounting processes and help increase your company's success in the future.
Small business finances can be confusing at times. Since financial issues play such an important role in the success of a small business, you should work only with a licensed CPA to evaluate and manage the finances of your small business. For more information, contact a CPA service, such as Siegerman & Company Inc.