One of the most crucial factors that could make or break a business is financial management. Over the years but especially today, plenty of companies fail either due to lack of proper knowledge regarding monetary handling; or because of poor accounting principles. Unfortunately, accounting is one of the most ignored aspects of a business.
People often assume that they can handle the tasks themselves. Although they can and its possible, accounting is such a broad topic for start-up business owners to fully grasp. The subject doesn’t only include audits but also tax laws, budget development, asset depreciation, estate planning, bookkeeping, payroll issues, and even business consulting.
What is a CPA?
Certified Public Accountants or CPA’s each have their own sets of expertise. There are CPA’s who specialize in particular industries such as mining or gastronomy. There are different tax and payroll laws which guide various business sectors; so it pays to hire accountants who are highly knowledgeable and experienced in their fields.
Not all accountants are CPA’s…but all CPA’s are accountants. The main difference is that CPA’s can perform AND certify financial statements. Although there are regular accounting degree holders who are NOT CPA’s, they are still qualified to perform audits and make budgetary plans for a company. Hiring them would be at the client’s own discretion.
Law and Order
Another good reason to invest in the services of professional CPA firms are state laws. These vary from state to state and would have different requirements. For example: large public corporations in general are obligated to get third party CPA’s for their audits in compliance with the Sarbanes-Oxley Act (SOX). Private or small business owners may or may not be required to do so.
Being an ‘accountant’ means accepting accountability for budget and other monetary matters which affect the company client and its relationship with the community, the government, and its employees. Start-up owners will find it very challenging and difficult to manage all of these on their own. Getting a skilled CPA on their hands would definitely be a great help for all aspects of their business.
Unless the business owner is an accountant himself, nothing beats getting expert advice on financial concerns from a trained CPA. A good one has extensive knowledge not only about tax assessments and balancing ledgers; but he can also provide plans to improve profit, prevent possible losses due to poor management, and suggest system enhancements.
Hiring an industry-specific CPA is great for any business owner since accountants have their own circle of professional contacts which can be beneficial for any company. It’s not only knowledge these days that is highly valuable; but also knowing the right people. Experienced CPA’s have more or less expanded their client networks to include other businesses in the same field – giving more buying or selling opportunities.
Good accounting services are one of the most profitable assets a business can invest in. It can save time, money, and extra effort which can be used to further push the business to success.