So you’ve hired a CPA. Congratulations! Hiring an expert to help you manage your finances is a great idea, and they will be helpful not just during tax season, but year-round. Let’s talk a little bit about the benefits of seeking professional help and how you can help them do their jobs most effectively for your business.
What is a CPA and Why Should I Hire One?
A CPA, or a certified public accountant, is an accountant that specializes in taxes. They’ll help you make decisions about business structures and accounting methods that will save you time and money. A CPA has gone one step further than traditional accountants. The CPA requires you to pass the Uniform CPA Exam—which tests an individual’s understanding of tax law—and hold a state license. Maintenance of the license is required, so you can count on your CPA to understand how tax laws change from year to year. Not only that, but if you were to be audited by the IRS for any reason, they can represent you.
As a small business owner, having a CPA who you can trust is an absolute must. Whether you are brand-new to the business world or your business is growing quickly, CPA will be able to provide you the financial advice you need to help you avoid costly mistakes, keep your accounts in order, and make sound financial decisions.
Preparing for a Visit from your CPA
A CPA will be even more beneficial to you and your business if you have everything in order for them. You don’t want to waste their time (and your money) by making them clean up your books. You’ll want to have your books in order so they can get right to work the moment they step into your office. Ensure that all your accounts are reconciled, each transaction is entered correctly, and you have business and personal expenses separated.
Not only do you need to have your books ready to go, make sure you have all the required paperwork your CPA will need to file your taxes. This includes personal information, like your Employer Identification Number (EIN), your previous tax return, payroll data, income records, and expense records. You’ll need to have any loan and asset information in order, as well as information about your investments. Receipts and invoices will come in handy here, so make sure you gather all the necessary documentation to make things go smoothly.
Before your CPA arrives, you may want your bookkeeper to help you get everything in order. At Money Matters, we make bookkeeping easy! Learn more about how we can help you: https://moneymattersmn.com/about/.
