When you start your own business and look into all the ways you can save money, cutting overhead costs are certainly important, and you’ve probably looked at ways to save money on operations from marketing to accounting. But when it comes to accounting, that may be an area you should budget for because the money you save on taxes, payroll costs, and other legal expenses could be significant. This is especially true for Salt Lake City small business owners who hire Utah CPAs, and though they do come at a cost, you may find the return on investment makes hiring a certified public accountant worth it. But do you really need a CPA?
Which Businesses Really Need A Small Business CPA?
To be completely honest, all businesses would benefit from having a professional accountant manage their finances. This isn’t shocking news, obviously having an expert run your bookkeeping would save you more money. But if the business you run is a sole proprietorship where you hire few or no employees, or where you don’t have finances tied up in all kinds of assets or have a complex accounting ledger, you may not need a Utah CPA. But if you are leasing a store or office property for your business, have a significant number of employees, have a lot of revenue and expense sources, or are leasing equipment or paying off loans, trying to keep track of items that should go on your tax documents can be difficult. The larger your business is and the more complex your finances become, the better off you are going with a small business accountant to oversee your tax preparation and financial reporting.
What Does A Utah CPA Do That You Or Your In-house Bookkeeper Cannot?
A Utah CPA is not just any accountant; they have to take courses and pass exams mandated by the state and know both federal and state tax codes in and out. Most bookkeepers will have enough basic training and understanding of preparing documents and statements to be adequate at the job, but a CPA will probably know better which things you should be reporting on your taxes and how you could save money using certain credits. But even more importantly, they have the license to be able to represent you if the IRS decides to audit you. In situations like that, they can deal with important legal matters that you may be lost in trying to solve.
Are There Any Additional Benefits To Hiring A CPA?
While you may only need a small business accountant for your particular needs, sometimes CPAs have more financial insight than your typical accountants. They may have worked for a larger corporation before and gained experience in major account management, or they may have been involved in analyzing and planning for fiscal years. A CPA might be able to take a look at your books and find ways you could grow income or cut unnecessary expenses that maybe you hadn’t thought of before. Many CPA firms are starting to use software nowadays that can give you a better idea of whether your finances are growing or not.
If you’re worried about the costs to hiring a Salt Lake City CPA for your small business, there are ways to cut costs on that too. Some firms have more flat rates than hourly rates, and some can be hired on an as needed basis instead of requiring a long-term contract from you. If the financial health and well-being of your business is a top priority for you, hiring a CPA is something you should be pursuing.