Five Signs You Need Help From an Irvine CPA Firm
As many as 400,000 small businesses are opened annually.
As these businesses grow, so too will the complexities of their day-to-day operations. At some point, owners have to start delegating some of the tasks they’ve been handling themselves in order to focus on continuing to grow their business.
One of the most important tasks a business owner will delegate out is the financial management of their business. If you are located in Irvine, evaluating local, Irvine-based CPA firms is a great place to start. Read on to learn the signs that you need help from an Irvine CPA firm.
You Want to Save Time and Money
Consider how much time and energy you are currently spending on managing your books, staying on top of accounts payable and receivable, and filing your taxes. As a business owner, you need to spend time running your business. Focusing on increasingly complex financial tasks takes away from your ability to focus on the work that matters.
Beyond that, unless you are a professional accountant, it’s completely likely that you are losing money by doing your own taxes and bookkeeping. For example, you’re likely too busy during tax season to go through each individual write off that you have the ability to claim. There might be deductions available for depreciation, home office space, or out-of-pocket business expenses. An accountant can help you identify these and other deductions throughout the year and complete your taxes with accuracy while saving you money.
A certified public accountant can also help you measure business metrics that affect your bottom line. For example, do you know what your ratio of revenue to employees is? Numbers like these help you make strategic decisions to enhance your business practices.
You Want to Regulate Your Business Practices
Some businesses are required to follow stringent government tax or special reporting regulations. In those cases, you should consider a CPA firm with the qualifications and experience to handle those tax requirements. They’ll keep you compliant and find ways for you to save money.
But even normal tax regulations can be difficult for the inexperienced to keep up with. Tax laws change every year and it’s important to keep up-to-date with those changes, or you run the risk of making big and expensive mistakes. Misfiling can not only lead to a huge tax bill and penalties you wouldn’t otherwise be expecting, but it can also be cause for an audit.
Your Business is Growing
If you started off small and expanded your business over time, you may be accustomed to handling the financial needs of your business independently. However, once your business reaches a certain point, you won’t be able to go it alone.
Even bookkeeping or well-constructed financial software is only meant to be utilized for minor tasks. When accounting tasks that should be given to a CPA are attempted without their guidance, money, time, and opportunities for growth are lost.
A certified public accountant will not only handle the day-to-day things like record keeping, regulatory items, and tax planning, they’ll also create reports that help you save money, operate more efficiently, and grow your business.
CPAs will be able to help you with things like pulling reports, which can be incredibly important when it comes time to set a budget or buy more inventory. On top of that, a bigger business means more employees and perhaps even expanding your operation into new facilities–a CPA will be able to advise you on organizing your paperwork and your payroll.
You’re Looking for Investors
When you’re looking for financing from outside investors, you have to have demonstrated that you take your business seriously. Even the best salesperson in the world can’t sell on hope alone.
In order to attract investors and sell them on your business, you need predictions and business plans that consist of hard financial data. You need to show how you’re going to frow and how you’re going to turn a profit that fills their pockets.
A certified public accountant can help you write that business plan. They’ll use sophisticated, state-of-the-art software to help make projections and reports. They’ll give you the hard data that makes you look more realistic and professional.
You Need Compliance Advice
Companies are held to a variety of compliance standards that impact how they do business. If you’re a sole trader, for example, you might be invoicing under your own name. If this is the case, you can probably deduct some living expenses or even the cost of a home office from your year-end taxes.
However, this legal structure also makes you personally liable for business-related obligations such as defaulting on debts or failing to pay a supplier. In these cases, you could lose personal property to pay your debts.
Before you choose your legal structure, you should talk to a CPA. They will advise you on the best compliance choices for your business according to the benefits and consequences of each. It’s best to do this before you even go into business so that you can be confident that you have made strong financial decisions from the start.
Ready to Hire an Irvine CPA Firm?
When you first start a business, it’s easy to think you can handle many of the daily tasks thereof without delegating or hiring outside of the business. However, if you have an entrepreneurial spirit, and you want to see your business grow, you’re going to need the help of a CPA.
Beyond the daily tasks of record-keeping and tax filing, they can help you with financial reporting and data-based decision making. They can offer advice on what structure to take and even help you attract investors.
If you’re ready to hire an Irvine CPA firm to help you grow your business, then look no further. Contact us today to get started.