July 1 2016
Even the most savvy business owners need to call in reinforcement from time to time. Here are the times when your CPA should be the first person you call.
1. When you start making mistakes
Mistakes are costly -- both in time and in money. If you find you're making more and more mistakes in handling the finances of your business, it's time to let a professional handle it. You'll end up saving money in the long run.
2. When you're ready to hand over the books
When you're just starting your business, sometimes it makes sense to handle your own financials. As you grow, however, you may realize that the books are keeping you away from doing what you love -- running your business. This is the perfect time to call your CPA. They can take over the reins so you can get back to being growing your company.
3. When your numbers are stagnant
If it's been awhile since you've seen any profit, call your CPA so they can review your financials and do an audit of your procedures to see if there are some leaks in your cash flow. They're trained to spot problems and can offer solutions to get you from the red to the black.
4. When your business is growing
Business is booming and you find yourself needing more staff and a bigger office. Your CPA can help you navigate the details of leases, employment taxes, and payroll.
5. When you're being audited
When you receive that dreaded audit notice, your first thought may be to call your therapist. Call your CPA first. They'll walk you through the process and will even represent you. That's right; you don't even need to be present during the audit. In fact, we prefer it that way. It eliminates the chance that your nerves get the best of you and you end up saying something you shouldn't. And they'll help keep you from getting in trouble again since it's more likely that you'll be audited again.
6. When you need additional funding
It's not easy getting approved for a business loan. Having a CPA can help improve your chances. They'll be able to arm you with reports that support your application, along with revenue projections to prove you're a thriving business. In addition, your CPA will be a great help in choosing the right loan for your situation and help you decipher all the fine print in the terms of the loan.
7. When you're ready to buy a business
Don't even think of buying a business without consulting your CPA. Sellers often use creative bookkeeping to inflate the value of their business. Your CPA is skilled in spotting that and can keep you from paying more than you need.
8. When you're ready to sell your business
Don't decide to sell your business without first consulting with your CPA. They'll get your books in order and provide reports that show the health of your business, increasing your chances of getting your asking price. They'll also be the point of contact for the buyer's accountant during the due diligence process. They can also advise you on structuring the sale so you walk away with more money.
9. When tax laws are changing
And they are -- all the time. It's nearly impossible to keep up with all the regulatory changes in federal, state, and local governments, but that's what your CPA is required to do. Let them walk you through the changes and how it will affect your business.
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