Four Ways Waiting to Hire a CPA Could Cost You Money
Don’t Wait to Hire a CPA
Hiring a CPA is typically a very big financial decision for any business. For this reason, many companies are apprehensive when it comes to considering a new candidate. If you’re apprehensive, it may be wise to remind yourself that failing to hire a CPA when you need one can be very detrimental to your business. Here’s a list of ways that show why waiting too long to hire a CPA could backfire for your company:
You May Be Understaffed
Being understaffed could actually cost you money, because you don’t have time to do all the things you can do with a full staff. Hiring a CPA can help you with your understaffing issues.
You May End Up Filing Bankruptcy
If you’re not an individual who is adequately acquainted with finances, you may find yourself making a lot of bad decisions in your business, and unfortunately sometimes making those bad decisions may require your company to file bankruptcy.
Your Business May Miss Opportunities for Growth
Business growth comes about through seizing opportunities, and if you’re not adequately prepared to handle growth you risk the chance of losing out on the opportunities of a lifetime. Not only are CPAs able to prepare you for growth, but they can make sure you’re able to navigate that growth step by step.
Your Business Could Miss Out on New Opportunities
New opportunities are waiting to be seized, and if you’re finances aren’t in order you may not always see those new opportunities for what they are. Hiring a CPA helps you not only see new opportunities but also helps you seize them when they appear.
In what ways do you think that not hiring a CPA could cost your company money? We want to hear all about it. Leave your comments below.
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Three Emergencies Your CPA Can Save You From
Financial Emergencies
A CPA can be a life saver for any business. There are several reasons for this. CPAs are able to help you make better financial decisions, plan for a better tomorrow, and most of all they can position you to grow your company in a way that it may never have grown before. In addition to being a life saver, CPAs have been known to save their clients from several financial emergencies.
Here are three emergencies your CPA can save you from:
Bankruptcy
While a CPA may not be qualified to walk you through the bankruptcy process in its entirety, a CPA can help you determine if bankruptcy is right for you. If it’s not, your CPA can help you identify what financial precautions you should take in lieu of bankruptcy
Depleted Savings
Are your savings depleted? No worries. Your CPA is here to save the day. Your CPA can take an in-depth look into your finances and help you determine how to regain and rebuild the savings you depleted.
Credit Card Debt
Are you faced with thousands of dollars in credit card debt? Your CPA can not only help you determine what your debts are but can help you devise a plan of how to pay off the debt quickly and efficiently.
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Three Questions You Should Ask Your CPA to Grow Your Business
Business Growth
Every small business owner dreams of growing their business from small to large. That transition is not always as easy as it sounds, however. Growing a business is tough, and while hiring a CPA is a huge step in the right direction, there are several things you must first ask your CPA before working toward financial growth.
What Is Your Current Financial Status?
In order to know where you are going financially, you must first know where you are. A business can never possibly know how to grow without knowing where to begin.
How Will We Grow?
Once your CPA has determined the current financial state of your business, the next question is: how will the business grow? A qualified CPA will show you where to cut back and where to spend effectively.
Will We Have to Freeze Our Spending?
When many businesses anticipate growth, they instantly have the desire to freeze spending in several areas of the business. While this is completely normal, it’s not always necessary. Finding out from your CPA if your business will have to freeze expenses is an easy way to predict how financial growth planning may impact the short-term finances of your business.
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Three Signs You Need To Stop DIY Accounting and Hire a CPA
There are several types of software available on the market now which have literally turned everyone who owns a business into a DIY (do-it-yourself) accountant. Though accounting software can save you a ton of money, it can also cost you thousands if you make one or two wrong missteps as it relates to your accounting records. Before you end up costing yourself thousands of dollars, here are three signs that you need to stop doing it yourself and hire a CPA.
DIY Accounting
You Are Spending More Money Than You Are Making
Are you spending more money than you are making? You probably have a problem with financial literacy. In order for any business to grow, you must manage not only what’s coming in but what’s coming out and if you can’t seem to gain control of your spending, it’s time to call a professional.
You Always End Up With Back Taxes
Back taxes are a nightmare for anyone. If you find yourself always owing back taxes every single year, perhaps a CPA can help you with sorting through your taxes every single year. This could include helping you identify deductions or helping you make better financial reporting decisions throughout the year.
You Don’t Know What You’re Doing
Do you find yourself constantly spinning wheels as it relates to your accounting because you have no idea what you’re doing? Stop right now and hire a professional. Instead of spinning your wheels on accounting, you could be spinning your wheels elsewhere.
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Two Ways Your Accountant Can Help You Increase Productivity
Business Growth & Productivity
When most people think about accountants, the first thing that comes to their mind is finances. While your accountant is primarily responsible for making sure your finances stay on track, this is not the only thing your accountant can do. In fact, your accountant actually holds the keys to help you increase your productivity.
Here’s two ways that they can help you do this:
Your Accountant Frees Up Your Time
Many business owners spend lots of time worrying about financing, and believe it or not, once you hire an accountant, that worry is suddenly non-existent. No longer do you have to worry about money, that’s now your accountant’s responsibility, and now all that extra time you have can actually be used in other places.
Your Accountant Can Help You Add New Employees to Payroll
Your accountant is literally the one who holds the key to whether or not you can afford to hire new full time or part time employees. Once your accountant has done everything necessary to help your company prosper financially, they can become an even greater asset to you by helping you hire new employees. As new employees are hired, not only do you suddenly free up even more time, but now you can effectively manage your part of the business without worrying about areas you have no knowledge in.
Has your accountant helped you increase productivity? We want to hear all about it. Do us a favor and leave your comments below.
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Three Red Flags Your CPA Can Identify to Avoid IRS Audit
Red Flags
Each tax season, only a very small percentage of Americans will be pulled into a tax audit by the IRS. However, though this is the case, the possibility of an audit is always something which hangs in the background when you prepare your return. Competent CPAs can help you avoid audits by identifying certain errors which, if left uncorrected, are likely to draw the attention of the IRS. Here are three red flags which your CPA can help you identify:
Preparer Mistakes
If your CPA isn’t the one who filed your taxes, be sure to check your tax forms to guarantee your forms are error free. It doesn’t matter who made the mistakes, it is ultimately your responsibility to make sure information on your tax forms is accurate.
Charitable Donations
If you have given to several charities, make sure that the donator documentation matches whatever number you put on your tax form. Lying to say you gave more than you actually gave is a federal crime that could cost you thousands or even potentially lead to jail time.
Dependents
One hundred percent of the things you put on your tax form can be fact checked, and many people are often guilty of claiming dependents which they really can’t claim. Make sure you’re not making any claims on your tax forms that you know are invalid.
While tax season can be very stressful, it is always better to be safe than sorry. If you’re not sure about something you put on your tax forms, either ask or make sure you have valid documentation to back up whatever you put down. Though very few individuals will be audited by the IRS, you want to be certain you keep all of your tracks covered just in case you do face an audit.
Do you have other tips that can help you avoid IRS audit? Leave your comments below.
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How Your CPA Can Help You Avoid Tax Scams
Avoiding Tax Scams
Whether your realize it or not, throughout the year, your company is at risk of several types of scams, including financial scams, tax scams, non-profit scams and even identity fraud scams. Despite this veritable avalanche of fraudulent activity, there are ways that your CPA can help you avoid tax scams at no extra cost to you. Here are three of these ways:
Here are three of these ways:
Your CPA Can Encourage You to File Early
Those who generally wait until the last minute to file their taxes are at more risk being scammed than any other group. This is often because those who are scamming you will file early in the hope of obtaining your refund before you do. The sooner you file each year, the greater are your chances of being able to avoid tax scams.
Help You Watch Out For Phishing
Taxpayers should always be on the lookout for potentially fraudulent or fake emails which are created specifically to steal your information. One important note to always remember is that the IRS will never contact you via email. When in doubt, always pick up your phone and call the IRS directly.
Discourage the Use of Non-Certified Preparers
There are lots of dishonest tax preparers who are readily available throughout tax season to provide assistance to you. These dishonest preparers usually work to steal your identity or steal your refund, and if you’re not careful, they could put you at risk for other fraudulent behavior.
Has your CPA worked with you in other ways to help you avoid tax scams? We want to hear all about it. Leave your comments below.
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The Differences between CPAs & Accountants
CPAs & Accountants
Accountants and CPAs are two titles which are often thrown around the business world. These are the two titles which have the power to make or break your company. Any company which continues to stand strong over the years is probably able to do so thanks to a great CPA or accountant.
In order to be an accountant all you need to do is be good with numbers, know how to use bookkeeping software, and be good with analytical reasoning. Normally, these are the people who work within an accounting department and don’t necessarily have the education or the certifications in order to do the job. Additionally, these people are not forced to have certain certifications. Many accountants also have the ability to prepare taxes as long as they pass the IRS test to receive a PTIN.
A CPA (or Certified Public Accountant) stands out above all other accountants. Most CPAs fulfill the following:
- Earn an accounting degree from an accredited college or university.
- Pass all four parts of the CPA Examination, which includes: auditing and attestation, financial accounting and reporting, regulation, and business environment and concepts. (Beginning July 1, 2015, students in Colorado must earn 150 hours of education prior to sitting for the Exam.)
- Pass the Professional Ethics Exam from the American Institute of CPAs.
- Obtain 1,800 work hours (usually one year) under the direct supervision of an actively licensed CPA.
So while both CPAs and accountants are very vital to practically any business, knowing how to differentiate the two is what will help your business as it relates to knowing what your accountant is legally and not legally able to do.
Did you know there was a difference between CPAs and accountants? What did you think the difference was? We want to hear your thoughts. Please leave your comments below.
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What Should Small Business Owner Expect From Their CPA?
CPA Expectations
Expectations, expectations, expectations.
We all have expectations for our employees, employers, customer and clients. Sometimes these expectations can be incredibly high, and other times they can be incredibly low.
As a small business owner, you probably wonder what you should expect from your CPA once you finally make the big step to hire one. Though expectations will always vary to some degree from person to person, there are a few things you should be able to expect from all CPAs across the board.
Here are three things you should be able to expect from every CPA:
Responsiveness
A good CPA not only responds to all of your requests, he or she responds in a timely manner. Responsiveness in any client-employee relationship is important because it keeps the communication intact.
Pro-activeness
CPAs tend to be fairly proactive by nature. They know what financial statements need to be compiled, what needs to be reconciled, and what needs to be reported. This level of pro-activeness gives CPAs the opportunity to flourish in their role as CPAs.
Communicativeness
You should expect that your CPA be highly communicative to your needs and concerns. Communicating means that, as the client, you should always share your accounting and financial records with your CPA. It also means that, if you are interested in making a large business purchase, your CPA should be one of the first people to know about it. Being able to communicate at a high level will keep your CPA from being shocked by your money decisions later on down the road. The more the two of you communicate, the more your business will receive as a result of having a CPA.
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The Advantages of Filing a Tax Return with a CPA
Filing Taxes with a CPA
CPAs are certified to handle all types of tax and accounting issues. Because they are so well acquainted with these types of issues, there are several distinct advantages of filing taxes with the aid of a CPA.
Here are a few of these advantages:
Organization
CPAs can help you create a budget to help you with unpaid taxes. They can assist you with working out payment plans with the IRS; they can also help you identify ways you can save or better invest your money. Hiring a CPA to do monthly accounting can also help you better organize your finances in the future.
Avoiding Fraud
CPAs are certified by the local government, and because of this, they are frequently audited by the IRS. As a result, hiring a CPA can help you avoid working with fraudulent tax professionals and also help you avoid identity theft in the process of filing your taxes because certified tax professionals are aware of the various tax identity scams most commonly perpetrated during tax time.
IRS Audits
The services of CPAs are among of the most effective ways of combating an IRS tax audit. CPAs often develop relationships with the IRS as well as tax lawyers; what’s more, they can also make referrals and can relay information to the IRS on behalf of their clients.
Saving Money
CPAs can help you save money with all of their specialized knowledge of deductions and credits. Additionally, hiring a CPA can help you avoid making mistakes on your return which could cause you to develop a higher tax burden.
Though individuals and businesses are able to file taxes on their own, it’s always best to consult with a CPA in order to receive the best bang for your buck.
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