If your past experiences in accounting haven’t been amazing, you probably haven’t worked with a modern CPA firm.
As a business owner, you may be wondering whether you should use a bookkeeper, or a CPA firm to manage your finances. Bookkeeping accountants typically provide basic financial services, such as recording transactions and preparing financial statements. On the other hand, a modern CPA firm will offer a broad range of services, including tax preparation, auditing, and consulting.
A modern tax-focused accounting firm gives a subjective look at what various financial data means for your business. They also offer more comprehensive services than a bookkeeping accountant. A CPA firm will be able to provide you with advice on how to grow your business, minimize your tax liability, and maximize your profits.
So, which type of professional should you use for your business? Well, it depends on your current financial position and your future financial and growth goals. Businesses that really want to accelerate their growth, take advantage of the various tax-saving vehicles and strategies, and have a comprehensive financial plan in place will benefit from using a CPA firm.
Here’s a look at some of the key reasons to use a CPA firm:
1. They Take the Time to Know Your Business
The first step in providing quality service is understanding your business. A good CPA firm will take the time to learn about your business model and your target market. This knowledge is essential in developing strategies tailored to your specific needs.
Depending on your current situation, a CPA firm can help you choose a proper business structure, set up financial systems, and implement controls to safeguard your assets. They can also provide advice on how to attract and retain customers, enter new markets, and expand your operations.
Besides, they will deploy various tax-saving vehicles such as tax credits, incentives, programs, and deductions that can help reduce your overall tax burden.
2. They Understand Your Tax Situation
Every business has a unique tax situation, also known as a “tax nexus.” This is determined by a variety of factors, including your business structure, location, and the type of products or services you offer. The right firm will take all of these factors into account to ensure that you comply with the law and minimize your tax liability.
By understanding your tax nexus, CPAs can:
- Determine which taxes you are required to pay
- Identify and mitigate your compliance risks
- Ensure that you are taking advantage of all possible deductions and credits
- Prepare and file your tax returns
- Represent you in an audit
3. They Go Beyond Recordkeeping and Tax Preparation
Today, the IRS is turning over every stone in its search for dollars. They’re looking at areas that they haven’t in the past. This increased scrutiny means that businesses need to be more proactive than ever in managing their affairs. The right firm helps you do just that.
Accounting professionals not only keep your financial records clean and accurate, but they also work with you to develop a plan for the future. This plan will help you achieve your financial and growth goals.
A modern firm will:
- Analyze your financial statements to identify trends and opportunities
- Provide advice on how to improve your profitability
- Assist you in developing budgets and cash flow projections
- Offer ideas on how to improve your business operations
- Help you obtain financing
- Prepare financial statements that meet the requirements of lenders and investors
- Provide advice on how to use your financial data effectively
4. They Have All the Technology Resources You Need
CPA firms take a conservative, measured approach to analyze facts and figures, but they are also on the cutting edge when it comes to technology. Most modern firms use the latest technology to speed up results, improve accuracy, and better utilize data.
This sophisticated accounting software stack can automate many of the tedious and time-consuming tasks associated with bookkeeping, leaving you free to focus on other aspects of your business. In addition, their secure client portals provide a safe and convenient way for you to access your financial data 24/7 from anywhere in the world.
The use of technology also allows CPA firms to offer their clients a more comprehensive range of services. These include:
- Virtual CFO services
- Financial forecasting and modeling
- Business valuations
- Fraud detection and prevention
- Forensic accounting
- Tax compliance and planning
- Online bookkeeping and accounting services
- Real-time financial reporting
- Analytics to identify trends and make informed decisions
- Data security and disaster recovery solutions
5. They Stay Up to Date on the Latest Regulations
The tax code is always changing, and it can be difficult for businesses to keep up with the latest regulations. This is especially true for small businesses, which often don’t have the resources to dedicate to staying compliant. A CPA firm can help you navigate these changes and ensure that you are in compliance with the law.
CPA firms stay abreast of the latest tax laws and regulations to provide their clients with the most up-to-date advice. This allows you to focus on running your business, safe in the knowledge that your tax affairs are in good hands.
6. They Have a Broad Range of Experience
Unlike a regular bookkeeping accountant, CPA firms offer a broad range of services, including tax preparation, auditing, consulting, and financial planning. This means that they have the experience and expertise to meet the needs of businesses of all sizes.
From start-ups to large corporations, CPA firms can provide the services you need to ensure the success of your business. They can help you with everything from bookkeeping and payroll to complex financial planning and estate planning.
7. They Provide Personalized Service
One of the benefits of using a CPA firm is that you will receive personalized service. Unlike big accounting firms, boutique firms are usually smaller, intimate, and nimble. This allows them to provide the customized service you need to grow your business.
These CPA firms have the ability to get to know you and your business on a personal level. This allows them to provide the best possible advice and service. They will get to know your goals and objectives and help you develop strategies to achieve them.
Work with a Modern CPA Firm
There are many benefits of using a modern CPA firm. From start-ups to large corporations, businesses of all sizes can benefit from the services that these firms offer. If you are looking for personalized service, expert advice, and a partner in your success, then a CPA firm is the right choice for you.
As a modern firm, Phillips Business Group believes that actionable financials are the key to success for any business.
We use the latest technology and tools to provide our clients with accurate, real-time financial information. Our bespoke services are designed to meet the unique needs of your business, no matter the size. Contact us today to learn more about how we can help you protect your bottom line, minimize your tax liability, and optimize your cash flow for maximum profitability.