6-minute read
It’s all about strategy and partnership.
Maybe you’ve never thought of your accountant as your business partner, but many possess extensive experience in handling all facets of business – not just taxes. They can pass this knowledge on to you and give advice as to how, when, and why you should apply it to your business.
If your CPA isn't involved on an ongoing basis helping with the books and understanding what's happening in your business this year until the year’s already over, they aren't strategic partners – they’re compliance officers.
What Can a CPA Provide Outside of Tax Time?
Certified Public Accountants (CPAs) are busy throughout the year. They can provide assistance with audits, financial statement compilations and reviews, help out with routine bookkeeping, process payroll and handle payroll filings, as well as provide strategies for business planning and budgeting. Most companies find everyday accounting tasks and financial consulting what they need most from their CPA.
A CPA can help you with everyday accounting tasks
Even if you have some accounting knowledge under your belt, performing daily entries yourself can quickly become overwhelming. Are you finding it hard to keep track of Accounts Payable and Accounts Receivable?
Maybe you want to begin measuring key metrics, like salaries to total revenue, and see not only how these ratios change, but also why they change. Accountants can help in this regard by managing payroll and creating graphics that illustrate the changes over various periods.
And not to worry – you won’t lose out on important business data because you’re turning over the reins. In fact, you’ll get more data over time and with the help of a year-round accountant, you’ll actually know what it means and how you can use it to improve your business. You’ll get important information that illustrates you company’s financial status at any point in time, helping you keep your finger on the pulse of your financials.
A year-round accountant can give financial advice and consultation
Sure, you must have your CPA on speed dial at tax time, but this isn’t the only time of the year when you’ll need financial advisement. Just like your family doctor helps your family stay healthy throughout the year, a good accountant can keep your business healthy.
Benefits of Working with a CPA Throughout the Year
A year is a long time – it’s 365 days of daily decision making in life and in business. What if you’re thinking of starting up a new business or trying your hand in the non-profit sector? Maybe you’ve got some big contract negotiations coming up.
But your CPA can help with non-business-related items, too. For instance, are you saving for college tuitions, retirement, or potential future large purchases? Your CPA can show you how to save and lead you down the road to financial security.
Working with your CPA throughout the year means you’ll be ready for next tax season in advance. Instead of playing Speed Racer to the filing deadline, you’ll have taken care of everything ahead of time, minimizing potential tax liabilities. That’s a lot easier than trying to play clean-up after the fact. It’s especially helpful if your income fluctuates throughout the year. You can coordinate your estimated payments with your CPA and ensure you’re on-budget and won’t over- or underpay your tax.
Year-Round CPAs Can Help You Avoid an Audit
Merely having an accountant doesn’t mean the IRS won’t ever audit your business. But an accountant can help you avoid the usual mistakes that trigger audits. Small business owners like you find trouble with the IRS over simple things they didn’t know were done incorrectly.
There’s no benefit of the doubt or leniency provided by the IRS for ignorance of the law. Good accountants already know those little things that can trip up business owners making them your perfect partner in things like expense tracking.
Your CPA knows what counts as tax-deductible business expenses – and what doesn’t. It might have worked in the past when you pressed the envelope, but that’s also pressing your luck. Knowing ahead of time what you can and can’t deduct can save you money in the long run. For instance, would you make a certain investment if you couldn’t claim it at the end of the year?
On the flip side, a CPA knows how to increase your deductions – ones you might not be aware of. CPAs are much more knowledgeable about what you can and can’t do and what you do and do not qualify for, meaning you can rest assured your business finances are in good hands.
Final Thoughts – Consider AccountedFor
As we near the end of tax year 2020, there were many new tax law changes and updates. Are you sure you’re prepared? If you haven’t heard from your CPA all year, consider AccountedFor. We’re an online CPA firm with cloud accounting specialists. We provide much more than mere bookkeeping. Let our accountants manage your day to day and provide you the data for making strategic business decisions for tomorrow.
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