Every business out there needs an expert professional to manage financial tasks and tax details. But the right person may not be an account because it is different from an accountant and a Certified Public Accountant.
Many small businesses will go for years without the insight and guidance of a CPA. This is understandable when looking at the cost of hiring one. The truth is that it may be cheaper, in the long run; to hire a consultant to look into your business affairs periodically than it would be for you to hire a full-time employee. If you're considering hiring someone full-time, take these steps before doing so:
1) Consider if your business needs an audit every year or every five years. A CPA can help with this decision based on what they find during their initial analysis.
2) Figure out which balance sheet method will work best for you (accrual or cash). You'll need to be aware of your tax liability and how the two methods affect each other.
3) Decide on a firm's experience level, location, and compensation rates. This will help you decide what the best option is for you.
4) Consider what fees are involved with different firms. You may choose a firm that has the option to perform the work only once, or periodically. If this is so, you can use their pre-determined fee structure to help guide your decision on which firm to hire.
5) Determine whether it would make sense to hire more than one CPA with different specialties (sales tax issues, unemployment insurance qualifications, etc.).
Is CPA worth it for SMBs?
Every business out there needs an expert professional to manage financial tasks and tax details. But the right person may not be an account because it is different between an accountant and a Certified Public Accountant. A CPA has the necessary education, training, and experience needed to provide all varieties of accounting services. These services can be everything from bookkeeping to audit engagements, taxes to business consulting.
A small business accountant will have at least a bachelor's degree in accounting and may be required to fulfill educational requirements for licensure in certain states. These requirements include CPE credits and possibly licensure exams, depending on the laws in your state.
Here are some reasons why you need to hire a small business accountant:
Bookkeeping is an important aspect of keeping your business running smoothly and can help determine whether or not you'll need an accountant when it comes time to file tax returns. Hiring an accountant to take care of your bookkeeping can save you time and money down the road.
2) Tax Preparation
Having an accountant to help you do your taxes enables you to stay current on all tax laws and work towards tax savings. It can also allow you to keep better track of expenses related to your business.
3) Payroll Services
If you have many employees, having a CPA help manage your payroll services can make sure that everything is handled correctly. It can also relieve some of the workloads for busy business owners who no longer have time to handle these tasks.
4) Tax Planning
Paying attention to upcoming tax changes is important for any type of business. Hiring a CPA can help you prepare for these changes by helping you find the best way to take advantage of tax credits and deductions that may apply to your business.
5) Employee Benefits
IRAs are one of the most common business benefits among small businesses. This tax-advantaged savings tool can help build upon your retirement savings for your employees, but it doesn't happen automatically. Hiring a certified accountant to take care of the process is important because it will ensure that all aspects are completed correctly and on time.
We Are Here To Help!
At GSP Chartered Professional Accountant Professional Corporation, we make hiring CPA for small businesses worth it. Apart from top-notch services, we are also offering the most competitive fees for services in Mississauga and Hamilton businesses and clients. If you are facing SMB accounting challenges, it’s time to have us on board.