CPAs perform an essential function in the wider business arena. While it may seem like the more economic option to manage in-house finances without external assistance, it is always the superior option to hire an expert voice. When it comes to company finances, there is no room for mistakes or miscalculations. Everything has to be above board, in top shape, and clearly recorded to facilitate the smooth running of operations and a clean reputation. Here are all the benefits of hiring a CPA for your company.
The Role of the CPA
CPA stands for certified public accountant. This role focuses on the financial aspects of a business. This can be many numbers of facets.
- Tax returns and administration
- General bookkeeping
- Company audits
- Client finances
These five areas are the core aspects of business for a CPA, but their role can sometimes go beyond this too. There are lots of areas to cover for CPAs and there are, therefore, specialist branches as well.
What Your CPA Should Ideally Have
When it comes to finding the right fit for your company there will be a question of who fits in with your current team first and foremost. In addition to this, it is vital to verify credentials and explore experience too. Below are two key areas to guide the selection process.
An Experienced Portfolio
While a newly qualified CPA certainly deserves a chance, it is important to take a wider look at the experience portfolio of any candidate. Even new CPAs will have some experience under their belt, so take a close look at where they have worked to gain their qualifications and how committed they were to the roles. Their areas of expertise are also important because this will be a vital factor to determine compatibility.
CPE qualifications are an integral part of the CPA role. The whole purpose of the CPE, or Continued Professional Education, is to enable accountants to maintain professional standards and perform optimally in line with government regulations. They often complete courses alongside their work commitments and there are specific learning trajectories for different factions such as the COPAS oil and gas certificate which you can learn more about here.
The Benefits: Painting a Clear Financial Picture
Having a standard procedure and routes of access to all financial elements of a business is invaluable. A CPA can provide this and therefore ensure that there is a clear financial picture at all times. This means as a company, you have a better grasp on staff intake and needs, payroll demands, incomings and outgoings, and general expenses. It is not a secret that budgeting is essential for all businesses in order to remain viable, functional, and operational. With the professional guidance of a CPA, all aspects of the budget will be transparent, adaptable, and up to date.
Avoid Tax Misconduct and Blunders
Taxes are a complex aspect of business that needs addressing in order to stay afloat and keep everything in line with the legal requirements. A CPA will ensure that taxes are completed successfully and without mistakes. They are a reliable guide and will calculate how much tax the company is responsible for and where payments need to happen.
Businesses are often targets of fraudsters. Your finances can be hacked, and it is a common occurrence. Whether it is internal fraudulent misconduct or there are external factors at play, a CPA will be able to recognize the warning signs and take immediate action. The earlier that fraud is spotted, the easier it is to manage the fallout. Without someone who knows the books reviewing things on a regular basis, there is less chance of spotting when something is not right.
Higher Efficiency for General Operations
A CPA person on your team will improve general operations. They can highlight key areas of improvement, and regularly update management of necessary actions for the business. Generally, businesses strive for efficiency. It makes sense from a budgeting perspective and for supporting employees to perform well in their roles. These two factors alone support better project outcomes and improve client relationships too. These are both vital factors for the success of any company, and it all comes back to how functional accounting is in the background.
When you hire freelancers and one-off contract CPA arrangements, there is no level of consistency at all for your business. Consistency is actually very important in order to maintain integrity and for understanding the bigger picture of events around how things operate. When one person or a team is reliably responsible for a branch of business, this is far more efficient than any other model in this context. It is valuable to integrate external audits of the CPA performance from time to time, but this can be managed easily. While having a clear trajectory led by one agenda is helpful, this role does need input to ensure everything is above board. Mistakes can be made by anyone, after all, and this is not an area where you can afford to be complacent.
Opportunity to Thrive
Finally, with the right CPA within your company, there is far more opportunity for the organization to thrive. There will be frequent performance updates and check-ins, and this is never a bad thing. These are often called audits, and they are designed to keep a business in check and line up with external expectations and regulations. Where there is room for improvement, it will be highlighted. Where things are going well, they have more chance to be further accelerated. It also reduces the overall paperwork expectations which mean there is more room for priority tasks to be at the forefront of the company. Everything in one place means more space for innovation to take place in a variety of departments.
The benefits of hiring a CPA for your company are undeniable. With a professional accountant in-house, operations are immediately streamlined for optimal efficiency. The consequences of this are only positive. There will be financial benefits overall, and everyone on the team will feel secure that the business is operating legally too.
Jeena Alfredo is a passionate digital marketer at The Business Goals. She is working with other companies to help them manage the relationship with The Business Goals for the publications.