As a small business owner in Cedar City, you have refined your skills but have technically become a jack of all trades instead of the master of one. You find yourself distracted with accounting, payroll, legal compliance, annual statements, government reporting and taxes, which all keep you from doing what you love.
If this sounds familiar, then you need to hire a good certified public accountant to help increase your profitability.
Making the Most of Your Time
You are likely spending your valuable time at tasks that don’t relate to your area of expertise, which costs your business money For starters, think about the time you spend on tax preparation. If it takes you 10 hours to prepare taxes, and you generally charge your client $50 per hour to provide services, then it costs you $500 of productivity. That $500 only represents a starting dollar amount. It doesn’t include face time, your stress level or paying employees to do what you do.
Mastering the legal system requires study that steals valuable time, and time is money. It’s not just the time it takes to master the legal system, but the cost of mistakes as well. Small mistakes equal big money when it comes to both penalties and simple errors that you could avoid. One CPA reports that a larger client paid an unnecessary $4 million in taxes because of a preventable tax mistake. While this might be an extreme example, even a $4,000 or $400 loss is painful, especially when it’s unnecessary.
CPAs: More than Tax Preparation
So far, the tax and legal aspects might convince most small businesses to use the services of a CPA. However, additional reasons might further weigh on your decision. If you need a small business loan, you’ll need a business plan. You might have 80 percent of the funds that you need, but a CPA can fill the gaps to make your plan go from mediocre to top notch to secure that loan. Legal issues extend beyond taxes with government rules further complicating the process. Of course, a good CPA can help you navigate that difficult terrain, which will come in handy if you are ever audited – and you’ll need a CPA for that as well. A competent CPA can help with the following:
- Employee matters, including taxes, vacation accruals, direct deposit, retirement and more
- Business taxes
- Balance sheets
- Financial statements
- Annual reviews
- Profit-and-loss statements
- Business continuation plans
- Bank accounts and more.
Learn how a CPA Can Help Your Business
Your best bet is to call a Cedar City CPA to find out how he or she can help you. Organize a list of tasks, Estimate how much it costs you to accomplish said tasks, and make a phone call. While you might find out that you don’t need a CPA, you might learn that a CPA can help you grow your business.