Many small businesses lack the capacity and the financial muscle to manage specific functions effectively. Preparation of financial statements and complying with the federal tax laws are among the most challenging functions that can put small businesses at risk.
As a business owner, do you find yourself wondering if your business is maximizing profit? Do you struggle to take advantage of the always-changing tax laws? Is your business running as efficiently as it should?
What’s more, the IRS has a string of tax-related penalties that can result in substantial fines and cripple your business. How do you avoid these penalties while ensuring you’re maximizing your earning potential?
Partnering with a Certified Public Accountant (CPA) can help comply with IRS regulations, improve efficiency, and be accurate in your operations. Here are some of the ways we help business owners in Norfolk and surrounding communities throughout Northeast Nebraska.
1. Improve Efficiency
Preparing the book of accounts, end-of-year reports, or taxes is a complex and time-consuming operation. Businesses without the requisite set of skills cope through experiments and consultation.
Accountants possess a unique set of skills to incorporate historical data, dissect numbers, and give sound financial advice. Certified public accountants can also analyze data for the decision-making process.
Here’s how partnering with a CPA can improve business efficiency.
Take over Financial Tasks: Bookkeeping is a daily task that a business must undertake to track performance and prepare financial reports. The daily entries include entering checks and deposits, invoicing customers, reconciling the bank account, and maintaining other sub-ledgers.
Partnering with an accounting firm takes away the burden and time required to perform these tasks. Consequently, the business owner and the employees can focus on the core operations of the business. In addition, a CPA will take minimal time to prepare the books and other statutory reports, effectively improving business operations.
2. Increase Accuracy
A regular employee or business owner dispenses duties to the best of their knowledge. On the contrary, a Certified Public Accountant operates by following a code of conduct set by the American Institute of Certified Public Accountants, among other professional bodies.
As a result, a professional accountant must demonstrate competence and due care to clients. They must also uphold professionalism and integrity while performing their duties. The accountants can face disciplinary action that includes license revocation for failure to follow the code.
Besides professionalism, a CPA increases accuracy through:
- Provision of Core Services: A business owner who combines running the operation and doing the work of an accountant is likely not operating at an efficient pace. On the contrary, a CPA specializes in maintaining financial records and statements. A CPA is, therefore, best suited to analyze trends and make sure the books are up to date and accurate.
- Accurate Accounting: Professional accountants have a set of tools that enhance the accuracy of their work. Some of the items they employ include a double-entry system, trial balances, balance sheets, and financial ratios. Ultimately, an accountant has knowledge, skills, and tools that’ll help your business achieve accurate books and reports.
3. Saves You Money
Running a profitable enterprise is among the top objectives of every business owner. Resource optimization also complements efforts to run a healthy business. Therefore, when you partner with an accountant, the business greatly reduces mistakes that waste money.
Here’s a breakdown of how an accountant can save you money:
- Tax Advice: The failure to file the proper taxes on time can attract considerable penalties for a business. Tax is also applied differently to entities like corporations, sole proprietors, or partnerships. Accountants, in general, offer essential insights like tax planning, business consulting, deadline management, and transactions that can mitigate your tax bill. These matters affect your bottom line, which is why it’s critical to involve an accountant.
- Outsourcing: Hiring an internal accountant has additional costs like benefits, welfare costs, and office space. You can bypass the associated labor cost by partnering with a firm that offers you accounting services on demand.
- Optimize Your Time: Time that is improperly utilized equates to lost money. For example, if you suspend your operations every two weeks to prepare books, you’ll lose an opportunity to close sales or concentrate on your operations. An accountant frees the schedule of an employee or a business owner, effectively saving money.
4. They Are Experts
A Certified Public Accountant undertakes professional exams and is registered independently. As such, CPAs perform their work in conformity with IRS rules and global standards of financial reporting.
Here are some of their skills that can add value to your business:
- Industry Knowledge: The subscription to professional bodies offers them constant updates and changes in reporting standards. They also work as a network which boosts their knowledge of the practice.
- Time Management: By partnering with a CPA, you will be able to focus on growing your business by outsourcing the routine financial tasks that a CPA can manage.
5. Gain Unparalleled Insight
An accountant has analytical skills that they can apply to analyze financial data. Business owners can tap on the professional relationship to gain valuable insights on how to improve their businesses.
For example, CPAs can analyze year-over-year trends to determine if you are spending too much on payroll or if a business owner needs to raise their bill rates.
Partner With McMill to Ease Your Operations
A professional accountant brings years of experience, reporting standards, and a supporting team. Therefore, your business will gain from improved efficiency, reduced cost of doing business, accurate financial reporting, and tax planning.
Here at McMill CPAs & Advisors, we are proud to serve Norfolk and all of the Northeast Nebraska community. We treat your family like ours and can’t wait to help you improve your operations. We serve clients ranging from medical, construction, specialty contractors, family farming operations, manufacturers, among others. Contact us for more information.