3 Ways A Professional CPA Helps Your New Business
Posted by: Brookside Admin
There is a seemingly endless list of factors that decide if your start-up makes it past the first year, and even more that decide if you're able to celebrate your 5th anniversary. According to the Bureau of Labor Statistics, 49-percent of new businesses make it to that five year mark. Adequate planning is certainly an essential part of many of those success stories and that includes a willingness to enlist professionals to help with parts of the business you aren't an expert on. For most small businesses, that would include accounting. Hiring a professional CPA to help with your business's finances doesn't guarantee success, but here are a few reasons why it helps make it more likely you stick around.
- Reduce your workload
When a new start-up kicks off, the owner is often the only one on the payroll. If you're the one expected to handle every aspect of your business, it's likely that at least part of it isn't being given the attention it deserves. Even established businesses need to set aside an hour or so every day for accounting and bookkeeping. When you're just starting out, it requires even more time. Hiring a professional accountant takes some of those responsibilities off your plate. You can trust a CPA to handle your finances while you take care of the parts of the business you're best at. This way you can also trust that bills and taxes are being paid and your books are being kept correctly, rather than risking an amateur mistake being made that could cost you dearly in the future. A professional even assists in areas you may not even know exist. For example, should you classify workers as employees or contractors? What type of tax entity should you classify your business as? And what are the tax reporting requirements for your specific business?
- Saving you from disaster
A seemingly minor accounting mistake could end in the ruin of your business. Without a professional CPA on board, you may not have anyone who can catch an error before it's too late. Hiring a professional not only ensures that finances are handled properly going forward, it also ensures that any previous mistakes are caught and fixed. A CPA will also help you establish an effective accounting system that will generate helpful reports and keep you on top of your company's finances at all times. Setting up this type of system yourself is both timely and requires a certain level of expertise. Instead of doing your best, hire a professional who has worked with businesses like yours before and already knows what you'll come to find out.
- Providing guidance
A typical accountant will have worked for a variety of businesses. They may even have managerial experience. This type of well-earned knowledge is incredibly valuable to a first-time business owner. Based on their experience and knowledge of your business, your accountant can likely make informed recommendations about decisions in marketing, human resources, business planning and much more. These decisions will help your business grow and become more stable. Being able to rely on someone who has been in similar situations before will help you avoid mistakes and make the right choices for your business.
At Brown Kinion and Company, we provide a wide range of business services for companies throughout Tulsa, Bixby and Broken Arrow. Contact us to learn what we can do for you.