Instead of trying to remember everything from your Principles of Accounting class or google everything, consider the ways a CPA can help you build credibility in your business.
This is not necessarily about saving time or money, although these are two likely outcomes. Having a CPA on your team helps you build a professional relationship with your clients. When your clients find mistakes in their billing, feel like the value of the purchase is off, or are sent notifications for invoices already paid, you wither away at that relationship.
Here are a few ways a CPA can help you boost your credibility and keep that client.
Accounts Receivable
Accounts receivable can be a frustrating part of your business. You may be concerned about what is appropriate when trying to collect payments or wondering how to build your terms in a way that does not harm your cash flow.
An accountant can step in and not only relieve some of this tension but help you build a process that makes your business look sophisticated in the eyes of your customers.
Whether that is implementing more appropriate terms or implementing things like reminders or software systems for accurate tracking. If you would like to learn more about how we build accounts receivable processes for our clients, check out this article.
Accounts Payable
Accounts payable holds a delicate balance of making sure your payments are made on time, while not disrupting a healthy cash flow.
Rather than just submitting payments when they are due, review your expenses and make sure there is a flow that works with your projected income. There is nothing wrong with submitting payment right before or on the due date, as long as no penalties are incurred!
Cash flow is not the only thing to keep in mind. Having a tracking system that can help keep your bills organized can ease the stress of not knowing what upcoming expenses you may be responsible for. A CPA can help you build processes and set you up with software that ensures all bills get paid on time. You will find this is one of the best ways to improve your credibility with vendors!
Taxes to Audits
You know you will eventually have to pay taxes and you may never get audited, but for both, you need accurate financial statements. Accurate financials is something a CPA can help you excel at - no pun intended. When it comes to business expense deductions, understanding what a qualified business expense is second nature. To learn more about how CPAs classify business expense deductions, check out one of our articles here.
Failing to provide IRS agents or auditors with the correct information can leave you with expensive fines you didn’t anticipate.
Accountants are used to working with auditors and some even have experience in the audit field! Taxes to go hand in hand with accounting, so when it comes time to file your taxes or submit paperwork to your auditor, you can trust they will not be googling 1120, 1099, or 941.
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If you are looking for ways to build credibility from your customers to your vendors, and everyone in between, consider a consultation with a CPA. We can talk about the areas within your accounting that can be improved without you needing to do extra work.
