Many small business owners make the mistake of thinking they don’t need the services of a CPA due to their organization’s size. Instead, they try to handle their finances in-house, but this often ends up costing them a great deal of time and money. In reality, a licensed CPA can help any company run more efficiently, and their expertise is especially valuable to small businesses. Here are some reasons why.

How CPAs Are Beneficial to Small Businesses 

Act as an Advisor 

There are myriad federal, state, and local regulations that companies must follow when it comes to their finances. A CPA can help business owners navigate the laws concerning sales and employment taxes and ensure they remain in compliance. These professionals can also assist with obtaining financing, creating a business plan, establishing budgets, and determining the most suitable legal structure for a business. 

Assist With Taxes & IRS Audits 

One of the most common services CPAs provide is income tax preparation. However, utilizing their knowledge and experience beyond tax season will ensure a smoother, less stressful, and more accurate tax return process. Working with a CPA year-round will make it easier to identify and execute tax reduction strategies, take advantage of all available tax credits, and prevent errors that lead to IRS audits. If a business is audited, CPAs can provide the necessary support and representation.

Implement Best Practices for Accounting & Recordkeeping  

It can be challenging for small business owners to organize the accounting and record-keeping systems that best suit their needs. A CPA can offer sound advice in this area and help set up account charts to analyze a company’s overall financial position and monitor cash flow and budgeting. They can also input day-to-day profit and loss information to maintain the most accurate financial records. 

Hiring a CPA allows small business owners to have peace of mind knowing that their financial obligations are being managed by a professional. When entrepreneurs in Honolulu, HI, need a reputable company to help them stay on track with their finances, they turn to Tudor Wilson & Associates CPAs, LLC.  Since 1999, the accounting firm has offered businesses a wide range of services designed to maximize profit, which in turn promotes growth and success. Call (808) 592-2000 to discuss your organization’s needs, or visit them online to view all the ways they can assist you in reaching your goals.