A certified public accountant (CPA) is a state-licensed accounting professional. They are specially trained in accounting procedures, and stay caught up with state and national tax laws. As a small business owner, you might work with a bookkeeper, or even keep track of expenses and revenue in-house. However, bookkeepers or accountants without certification may lack the skills and education required to help you become more profitable as a business. Here we explain what CPA services for small businesses are available and the benefits those services provide.
CPA services for small business help improve profitability, with valuable insights into how you manage your cash flow, including:
Tax Accounting Services
Keeping up with tax laws to leverage the deductions and credits available each year is the best way to reduce your tax payments. Even a basic tax return for your small business can benefit from the experience a CPA tax professional brings to the table. Their job is to save your tax dollars, ensure compliance, and reduce the risk of audits. Tax accounting services done by a professional CPA helps your business:
- Avoid common errors and inaccuracies flagged by the IRS
- Reduce the risk of audits and delays on the processing of potential tax refunds
- Strategize an effective payroll withholding plan to provide greater income throughout the year instead of depending on your annual tax return
- Leverage common deductions and credits throughout the year to limit your tax liability
- File electronically for a quicker refund
- To have representation during a tax audit, if one should occur
Tax accounting services reduce your taxes paid by leveraging the deductions and credits available. You’ll also avoid audits and enjoy improved income instead of waiting for your annual tax return. CPAs teach you how to include tax planning in your day-to-day operations, so you take the necessary steps to reduce your tax payment when tax time rolls around.
Financial Statement Preparation
Every business owner can gain valuable insights about their business with financial statements. However, most don’t have the time to prepare and review these statements while balancing all their other tasks. There are so many aspects of your finances that require attention, and a CPA can assist with all of these areas, including:
- Bank Reconciliation: Updated bank records allow you to manage cash and track growth.
- Income Statements: Profit/loss information helps you track the operating costs of your business and identify the challenges and opportunities that contribute to your ability to become profitable. You can track sales and review returns on a percentage of your sales, to make informed decisions to improve profitability.
- Balance Sheets: Keep your finger on the pulse of your financial health, spot trends in cash flow and understand when opportunities exist for growth. You can also increase your access to capital from lenders and investors because your balance sheets and income statements show your worth and ability to meet your debt obligations.
CPAs can also help identify issues with your general ledger system, or set up a system for you so your records remain accurate. They can design a system so you can access them whenever you need them in real-time.
Payroll processing services help you avoid penalties and fines for failing to adhere to payroll tax laws. Oftentimes, a lack of compliance is unintentional due to the ever-changing laws and regulations. Cost-effective payroll processing ensures you remain compliant, without stressing over trying to make sense of complicated, changing federal and state tax laws.
You can choose the level of payroll services you require, whether it is a hands-off approach complete with IRS and state tax reporting, or adopting an online payroll processing method that allows you to enter employee hours and have the software do the rest. CPA-managed payroll processing systems ensure you always remain compliant. You help keep your team happy as they always receive their pay on time without errors. As well, you can manage all payroll-related paperwork effortlessly, including onboarding and offboarding.
The only way to keep on top of accounts payable is to understand when, where, and how your cash needs are being met. CPA services for small businesses offer accounts payable strategies that ensure you meet your debt obligations. You’ll identify cash needs, and plan accordingly based on cash flow. A smart accounts payable plan ensures you always have funds available when a crash crunch occurs. You’ll maintain stronger relationships with debtors and suppliers, so credit is available to you when you need it.
CPA services for small businesses are uniquely qualified to offer financial advice that helps you meet your financial goals. Through their services, you gain valuable insight into the state of your business, how to reduce your taxes, and how to manage your cash flow more effectively. As a result, there are many benefits small businesses get from CPA services. CPAs:
- Understand and follow changes in tax laws, so you never miss credit or deduction opportunities
- Have the expertise to do a more in-depth analysis of monthly and yearly reports so you can make informed decisions and remain forward-thinking using a proven cash planning strategy
- Are a resource for managing your expenses and investments, offering valuable advice and support when you need it
- Can represent you in the event of an IRS audit while reducing risk for audits through their tax law expertise
CPA services for small businesses allow you to always understand where your business is today, how to fix financial problems, and where you can find opportunities to improve your profitability in the future. With the help of a CPA, you can gain control of your cash and tax planning and enjoy improved financial health. As a result, you have access to funds to invest in your company’s growth.
Ready to start working with a CPA in San Antonio? Schedule a meeting with us and we’ll help you determine what CPA services you need.