You’re the CEO of a thriving small business. You’re netting clients left, right, and center. In fact, your business might be growing so fast that it’s time to bring on an expert to keep track of your finances, making sure the books are balanced and you’re optimally set up for tax season. That’s where a small business CPA firm can make all the difference.

Wondering what value a new CPA firm can bring to the table, and how to tell it’s time to hire one to support your growing business? Let’s take an incisive look below.

How Is the Right CPA Critical to a Growing Business?

Many business owners don’t realize that an astonishing 80% of small businesses fail within the first year and a half. Oftentimes, one of the main causes is poor money management.

If you are looking to avoid this all too familiar trap, then it’s wise to hire the right CPA firm sooner rather than later. While the main job of a CPA is to handle accounts, the right one can wear many hats for your growing business. They can handle a variety of other important tasks like tax planning, bookkeeping, and consulting.

Here’s a general breakdown of responsibilities you can expect from the right CPA:

• Tax planning, filing, and advice – CPAs are precisely trained to handle all of your organization’s tax requirements
• Accounting – Cash flow can be a huge concern for any growing business. That’s why you need a CPA to help track, record, summarize, assess, and report on your company’s financial transactions.
• Bookkeeping – The right CPA not only records your financial statements but also ensures that these records are correct, up-to-date, and comprehensive.
• Consulting – A qualified CPA can provide sound advice on financial risk management, budget, and other complex financial matters.

Signs You Are Outgrowing Your Current CPA

In your quest to manage the finances of your growing business, you may have already hired a CPA firm. However, sometimes change is necessary to ensure you get the best possible advice and financial service.

Here are seven telltale signs that you need to upgrade your current business CPA:

1. Your Business CPA Doesn’t Think Outside The Box

Qualified accountants handle day-to-day logistics competently enough, but they don’t always give you the strategic financial planning you need to keep growing.
Finance requires both a fine eye for detail and far-reaching vision that allows your CPA to plan ahead of time. Your calendar already contains built-in financial planning milestones and recurring functions, including payroll and tax filing deadlines. If your existing CPA is not preparing well ahead of time for these dates and reducing the impact of charges, it might be time to hire a different one.

2. You Get Excuses and Referrals, Not Answers

Normally, your accountant should be ready and willing to listen to you whenever you need financial advice. If that’s not the case, it’s time to look elsewhere. At a top-notch CPA firm you get called back right away and you speak with your dedicated account manager, not office personnel or assistants. You know you’re in the right place when you get concrete answers, not excuses or generic responses.
Another factor to consider is how often your accountant refers you to someone else to answer a question or meet one of your accounting needs. If your CPA firm doesn’t specialize in the areas that solve your pain points, they may refer you to other financial experts who may or may not be a good fit for your business. Referrals within the CPA space can be a helpful or even necessary way to give you the best possible service or advice, but if your CPA firm isn’t capable of being the key player on your financial team, it’s time for a new one.

3. You Get Little or No Guidance

Part of a CPA’s job is to provide year-round guidance on matters regarding income, tax, and expenses. If this is not happening, your business might encounter deeper problems down the road. If your current CPA is merely filing your taxes and not offering any robust advice, it might be time for an upgrade.

4. You’re Paying Far Too Much

Managing your finances shouldn’t cost a fortune–especially if you’re a growing business. If you think you’re paying premium fees for otherwise standard financial services, it is time to shop around. Look for a CPA firm that offers a variety of solutions with no tie-in charges so you can pick one that suits your budget.

5. Your Accountant Rattles On With Endless Jargon

Truth be told, the financial world is full of curious and often baffling jargon and insider terms that can sound overwhelming and confusing to professionals who are not trained as accountants. If, however, your CPA uses this to their advantage by turning your communication into a constant stream of jargon in the hope you’ll get confused and simply pay their invoice, you’re better off with a different CPA firm.

6. You Work With a Financial Planner Who Is Not a CPA

If you’re currently working with a financial strategist but paying rates for a Certified Public Accountant, it might be time for a change.
Accountants typically have a bachelor’s degree in a finance-related field, usually management or accounting. To be certified, they follow it up with a rigorous study and a comprehensive exam. Continuous education is key to maintaining certification, and a financial strategist who’s not a CPA might lack the incentive to keep up with studies. When deciding where to spend your hard-earned money, it makes better financial sense to choose a Certified Public Accountant who understands the current tax laws.

7. Your Accountant Overlooks Tax Deductions

Accountants should act promptly to take advantage of all tax credits or recommend tax deductions. If you feel you are missing out on tax credits or deductions, it might be time to switch to a new CPA firm. An accountant’s job is to keep an eye on your finances, and your CPA should be doing everything possible to reduce your tax burden.

Final Thoughts

Finding the right CPA firm for your business is of paramount importance. If you’re serious about taking your business to the next level, you need an accountant who will act as a trusted advisor to support your growth. The right CPA can guide you in your accounting, bookkeeping, and taxes, in addition to giving you sound financial advice to help you flourish.

Need help finding the right CPA? Get in touch with BradyRenner today to speak with one of our highly qualified CPAs in your area of expertise. You work hard, and you deserve to reap the benefits. Let’s work together to see what the right CPA can do for your growing business!

Image Credit: Photo by Cytonn Photography on Unsplash