Starting a new business is an exciting—and stressful—endeavor. There is far more to making entrepreneurial dreams come true than having a good product to offer. New business owners can have an abundance of ideas and plans, coupled with a multitude of i’s to be dotted and t’s to be crossed.
Bringing big plans to fruition and keeping the company viable as it grows can be a weighty task. About 20 percent of new businesses fail within one year, and only about a third of new businesses are around after 10 years. As daunting as it may seem to start a business, an entrepreneur’s burden can be eased with the help of a skilled accountant. Here’s why new business owners should consult a CPA as they work to build a successful company.
Prepare Financial Reports
There’s a lot more to know about the financial success of a business than the numbers in a bank account. Keeping track of income, expenses, profits and losses, cash flow, and other metrics are crucial to keeping a company afloat. All of this information can quickly overwhelm even financially savvy business owners. An experienced CPA can take the weight off of business owners and deliver detailed financial reports that show exactly where the business stands.
Understand Your Company’s Data
There are mountains of financial data for businesses to sort through, especially in today’s digital world. Even when the data is compiled into regular financial reports, it can be difficult to understand what it all means for your business.
A CPA’s job does not end with compiling financial reports for a business. Your CPA can analyze the data and explain how it impacts your day-to-day business operations and overall outlook. A CPA’s keen eye and analytical skills can spot inefficiencies and ways to improve processes. This valuable information can give businesses an edge over their competitors and make all the difference in keeping a company viable. A CPA can do more than present numbers for business owners to digest. They can tell the story of a company’s finances and how they translate to success.
Plan for Your Business’ Future
A business owner can get bogged down with the minutiae of building a business from the ground up. The everyday tasks and struggle to turn a profit may leave little room for big-picture planning. A dedicated CPA, on the other hand, has the big picture and immediate financial stability in mind as they analyze data for the benefit of the company. Expert data analysis and forecasting services show where the business could be in a year or five years, and a CPA can help ensure processes are in place to achieve those goals.
Sort Out the Taxes
Understanding taxes is a necessity, but it isn’t always an easy task. When it comes to tax laws for companies, the job can become complicated quickly. Not only can taxes be complicated, but not following tax law or going through an audit with messy or missing paperwork can be costly for a business. Your CPA can be counted on to understand tax laws and regulations, and with detailed, accurate financial records, they can handle any audit that comes your way.
When you are starting a new business, all the startup work can be time consuming and costly. Getting help from a CPA can make it easier to get your company off the ground and support it into the future.
Justin Hatch is the CEO of Reach Reporting, and is an industry expert in the field of business management. He specializes in software development and financial reporting and has 20 years of management experience.