Accounting is not exactly something that most people get super excited to talk about. However, that does not diminish its important role in our society. This goes for businesses and personal use, of course, but I will be focusing on the former topic today. If you’re not sure what accounting is in the first place, I recommend checking out this page first.
The phrase gets thrown about so often, but I find that many people do not really know what it is or what it entails. In fact, there are rigorous tests that anyone going into the field must pass. That is the only way they can be considered a “CPA,” or certified public accountant.
They can serve our businesses in a variety of ways, as you might expect, however, their primary function is to ease our own burdens. Bookkeeping is complicated and a real challenge, especially for those of us with small businesses who are not yet fully familiar with how everything works.
What do They do?
The first thing they are in charge of is understanding the language and functions surrounding finances on an organizational level. They should know the ins and outs of this and be able to provide valuable and worthwhile counsel to the people hiring their services. Otherwise, they would not be bringing much to the table!
Within this umbrella, though, there are a few things in particular that you should expect. Naturally, they oversee any financial records that you might have. This is so they can help you when tax season comes around.
Honestly, I have never been a fan of the way we have to do taxes here in the United States. It feels like a guessing game where we are punished way too harshly if we are wrong. However, when it comes to this topic, I’m thankful I have a professional on my side to help me sort it out for my organization. In fact, a CPA specializes in taxes.
They are also there to help you with gathering and preparing any necessary financial statements, as well as making budgets. As they create them, they should also focus on maintaining them and reviewing them for any changes that need to be made. A lot of these things require flexibility, after all.
Finally, cash management is another must-have from any that you seek out. This will likely involve some careful thought and planning, but it will be worth it in the end. Since they can help so much in an advisory and practical way, that is one reason you may consider them.
What Special Qualities do they Bring to the Table?
You may be wondering what puts a certified public accountant above the rest. Especially if you are considering CPAs in Los Angeles, it might not seem worth it at first. Given the hustle and bustle in that city, though, it is something to consider. Do not let any aspect of your company fall by the wayside, least of all the finances.
What they can bring, first and foremost, is some prestige and respect that comes with their certification. As mentioned earlier, the testing is quite intense, and there is a vast amount of training involved in the process of getting certified. So, you will know that you have hired someone highly respected in their field, which is quite a comforting thought.
Naturally, they also offer that specialized knowledge about taxes, something that I value quite highly given the stress surrounding that season each year. Knowing that I have someone to help with all of the paperwork and filing takes quite the weight off of my shoulders. Even if you do not mind doing them, a professional who can ensure you follow all of the legislatures out there on a federal, state, and local level is hardly a bad thing.
In addition to that, the overall analysis and advice that they can provide are often invaluable. Sure, every CPA is indeed an accountant, but not all accountants are certified. That extra layer of trust between us and the people we hire to help us is nothing to sneer at either.
I would almost compare it to peer review in the academic fields, which you can read about here: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4975196/. More credible academics have their work passed along to their peers in similar expertise for consideration and deliberation. The peer review process is a critical one in that realm, so it is hardly a surprise that it is applied in other places as well.
Best Practices and Audits – Having Someone on Your Side
Especially in California, and more specifically in Los Angeles, having someone there who can help guide us through the challenge of owning a company and dealing with the finances as well as all public relations and production can be a great relief from pressure. Often, new business owners feel they must have the entire weight on their own shoulders and handle everything, but delegation is a valuable tool to cultivate.
If you are unsure when to start looking, there are a few signs. The best time to hire one is actually before you launch, but you likely have already done that. You see, it is the moment when money is at its scarcest, so bringing in an accountant to help with budgeting can be a lifesaver.
However, besides that, when should we look into hiring one? Well, getting an audit from the IRS can certainly be one situation. It is scary enough to get one, let alone if you do not know how to even approach the issue.
The early months of the year, especially January, and any time during tax season are another period where you might want to hire one. If you’re not sure why, you might want to check out this page. Hopefully, I have already explained it well enough in this article though, so I will not linger too long on it.
If you are going to close, or if you are acquiring or merging with another company, that could be precedent to hire a CPA to assist with the process. It can be a bumpy road without the proper preparation, after all. Those kinds of significant changes, on an organizational or structural level, do tend to require high attention to detail.
They should be able to facilitate the process to some extent, coming in the form of understanding financial records, performing due diligence, and verifying any assets on either side. In this way, it can help protect you from any bad deals.
Are they Worth it?
If you have gotten here, you probably know that my answer to this is yes. I think that finding an expert in the field to assist with my organization has been a good decision. I have more time to worry about my customers rather than only bookkeeping.
However, knowing where to look can be hard. Be sure to find out of their certification is valid, for example. Doing a quick search on an engine of your choice can probably give you a bounty of results. My recommendation?
Read reviews. Call or shoot them an e-mail. Determine if their customer service and personality synergize with you before commit. You will know when you find the right person for the job, trust me.
