SEVEN REASONS YOUR BUSINESS NEEDS A CPA

I have often heard business management teams debating if their small businesses can run efficiently in the long run without a fractional CPA. This might work in the short term, but it could cost a business money and time in the long term. Here are seven reasons why running a successful business requires the services of a CPA.

  1. CPAs Have Detailed Comprehensive Understanding of the Generally Accepted Accounting Principles
    The acronym CPA stands for Certified Public Accountant. To receive a CPA certification, an individual must complete several courses related to academic accounting and take the rigorous CPA exam. Currently, only 30-45% of all US accountants are CPAs. A CPA understands the ins and outs of accounting’s Generally Accepted Accounting Principles (GAAP). GAAP standards are the regulations business owners and management teams in the USA must follow in operating their businesses. A business needs a person who does not just speak the accounting lingo but has an in-depth understanding of accounting.

 

  1. CPAs Have Significant Accounting Hands-on Experience
    Beyond the in-depth accounting knowledge that CPAs have, most have a few years of hands-on experience before obtaining their certification. This is crucial for any small business as it means the CPA steps into the business with ideas of how to improve the financial health of the business as well as being able to pinpoint red flags in the business’ systems or decision-making strategies that need to be addressed.

 

  1. Certain Services Required of A Business Can Only be Provided by A CPA 
    While any individual can perform many accounting-related services, certain services can only be performed by a CPA, for example, compliance engagements like reviews and audits. These are services that some businesses, for example, health-related businesses, are required to have in order for them to meet their certification requirements.

 

  1. CPAs Are Objective, Independent, and Maintain Integrity 
    Two codes of ethics that CPAs are required to follow are objectivity and Integrity. The Rule states, “In the performance of any professional service, a member shall maintain objectivity and integrity, shall be free of conflicts of interest, and shall not knowingly misrepresent facts or subordinate his or her judgment to others.” CPAs are also independent, meaning they are neutral in their responses and advice given. A business benefits from contracting with an individual who has no bias in the services she provides, as this ensures the business that the advice being given is in the business’s best interest.

 

  1. CPAs Are Trusted Business Partners 
    This reason for contracting with a CPA feeds off of the prior reason: objectivity, integrity, and independence. Because CPAs have these characteristics, they can be trusted to provide services that advance and help a business. Whether it is sharing ideas, giving advice, or analyzing financial data, every business wants the work to be handled by someone who can be trusted.

 

  1. CPAs Have Network Connections With Other Professionals 
    Since CPAs are highly sought-after professional service providers, they tend to run in the same circles as lawyers, bankers, business regulators, and financial investors. For a small business that needs services from any of these professionals, having a trusted CPA in your corner is a plus, as she can get you in touch with the right professional your business needs.

 

  1. Using a CPA’s Services Will Save Your Business Time 
    As mentioned earlier, CPAs have both in-depth book knowledge of accounting terms and processes as well as hands-on experience. Having both rare accounting skills results in CPAs being an excellent resource for a business that wants to save time and get reports created, analyzed, and distributed in a timely fashion.

 

Hopefully, by reading through these seven fundamental reasons why your business should contract with a fractional CPA, you will reconsider operating your business without a CPA or consider continuing to run your business with the help of a CPA. Can your business get by without a CPA? Perhaps in the short term. Is it worth the risk? I do not think it is. I have witnessed businesses spending thousands of dollars contracting with CPAs and paying penalties and fines to regulatory bodies to undo damage caused dues to accounting work that was erroneous handled by someone who had little to no accounting knowledge or experience. Hire a fractional CPA, like NaRfula Financial Solutions, and do it right the first time.

 

DISCLAIMER: The information provided herein does not constitute the provision of legal advice, tax advice, accounting services, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional legal, tax, accounting, or other professional advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation and for your particular state(s) of operation.