If you are starting a new business or have been operating your business for a while now, you should strongly consider working closely with a CPA. A certified public accountant can address several areas of your business to ensure your finances and business will grow. How can a CPA help your small business?
Assessing New Businesses
Starting a business on a solid foundation is important. When coming up with any business venture, it is important to talk to a CPA firm to help you determine whether you can actually be profitable and maintain your business. A CPA firm can help you get started by helping you with budgeting and forecasting.
Choosing a Business Entity
Starting a business comes with many questions. One of the most important decisions will be how to categorize your business. The different business entities include:
- C Corporation
- S Corporation
- Sole Proprietorship
An accountant will help you choose the right entity for your situation. In addition to being the most tax efficient, the final decision will ultimately depend on liability protection, budgets for estimated taxes, business partners, and more.
Sorting Tax Responsibilities
This accounting service is especially helpful shortly after starting your business. Your CPA can explain all the various tax responsibilities you will need to address. Some of them may be pretty straightforward, but some may go unnoticed until you get a bill or penalty from the government.
Qualifying for a Business Loan
When looking to grow your business, you may consider a business loan. If this is the case, it is essential to work with an accounting firm as you prepare the necessary financial statements and projections required by lenders. CPAs can perform business valuations and offer advice on which type of loan would best fit the needs of your business.
If your record-keeping skills could use some improvement, you might find it rather difficult to prepare your taxes or apply for business loans. Running a business can be complicated, and it can be easy for your company to go downhill if you fail to keep track of expenses.
A CPA can set up a comprehensive system that tracks expenses and income while staying up to date on tax changes. Using the expertise of professionals will keep you organized year-round and ready for anything that comes your way.
Planning for Future Growth
Every business owner wants to grow and expand from year to year. CPAs offer strategic planning to support this key endeavor.
- Analyzing budgetary needs
- Forecasting growth
- Analyzing spending
- Recommending more efficient spending
- Preparing for sale, merger, or acquisition
Needless to say, expert advice can help your company grow from a small start-up business to a successful, worldwide organization. Concentrate on running your business with sound financial advice from a CPA.
Planning Your Deductions
A CPA can help you figure out what expenses you can deduct when filing your taxes. Tax-deductible expenses include:
- Office supplies
- Accounting fees
- Phone usage
- Meal and travel expenses
- Company vehicle expenses
- Charitable contributions
A CPA can also help you qualify for more complicated deductions. Ultimately, a certified public accountant can teach you how to qualify and get the most out of your write-offs.
Work with a Birmingham CPA Firm to Support Your Small Business
Starting and maintaining a business is an exciting endeavor. With that excitement also comes with a lot of responsibility. If you are starting a business or are an established business owner, consult with a CPA to make sure you are doing all you can to succeed.
Our CPA services for corporations are all centered on providing clear, concise results for our clients. We understand that businesses, large or small, need the right services and information to make good decisions. Contact Sovereign CPA online or by calling (205) 402-4245 to learn how we can guide your business to even greater success.