1. Increasing profitability

CPAs can help you save money and increase profitability by analyzing expenses and looking at possible improvements in cash flow management, reducing debts, negotiating with vendors, cost control, forecasting, maximizing pricing, planning for profit, and better reporting of information to facilitate better decision-making.

2. Minimizing your tax bill

CPAs can help you minimize your tax bill by helping you save on deductibles, keeping your financial information up to date, taking advantage of tax credits and incentives, and ensuring that you always receive the most up-to-date advice.  Additionally, CPAs help ensure that you don’t miss tax filing deadlines and the resulting penalties.

    3. Evaluating performance

Financial records show the results of operations and the financial position of your business, but CPAs can help you understand how your business is tracking financially. A CPA can develop performance evaluations that help ensure your business is growing in line with projections. These evaluations can save you money by determining how your operations and people are performing. Your accountant can also help you compare your current data to your previous accounting records and help you allocate your budget appropriately.

4. Future projections

Having correct budgets and forecasts can be what makes or breaks a business. Projected financial statements consider past financial trends, market conditions and likely changes, and business expectations to arrive at a future financial scenario. Projected financial statements will help you plan for the future. Accurate financials play an essential role in these plans. Well-structured accounting processes most appropriately provide historical financial data as it helps keep your operations profitable.

5. Determining your business structure

As your business grows, the legal structure that worked for you in the past may not be ideal going forward. A CPA will look at the advantages and disadvantages of each business structure, taking into account its tax-saving and non-financial considerations, and can advise you on which setup works best for you.