Money is the building block of wealth and the generation of wealth is the driving force behind business. It’s the whole reason for being in business. With this in mind, it is obvious as to see why a top notch accountant is such an important investment, especially for small or up-and-coming businesses. Not hiring a Glendale accountant with exemplary skills is like driving a vehicle haphazardly across the country with no goal in mind as to a destination point.
For this reason, merely hiring an accountant is not sufficient. Hiring a Certified Public Accountant is the way to ensure the financial health of a business both now and in the future. Those businesses in the Glendale area are especially fortunate. A Glendale CPA is more likely to entail the most extensive knowledge and impressive credentials of any other area in the region, making them a favorite of large and small businesses alike.
A Commonly Underutilized Asset
Unfortunately, the CPA role is one that is somewhat misunderstood and commonly underutilized. They are also known by the unassuming name of accountant and the title of accountant conjures visions of an individual adding up receipts and reporting figures to those in decision making roles, but never really playing a professional role in a company. Accountants are made to seem like those who deal in absolute figures, but never utilizing critical thinking skills that actually solve problems.
In truth, they are extremely knowledgeable, highly educated, and valuable assets to a company. They must undergo grueling classes regarding complex financial topics. Just like a doctor or a lawyer, they must pass an exam to become certified and then answer to a strict board called the American Institute of Certified Public Accountant (AICPA). A CPA license is not an easy one to obtain and, because of this, a certified public accountant can be counted on to ensure the financial health of a company.
Many small businesses feel the role of an accountant is only beneficial during tax time. This could not be further from the truth. The role of an accountant is year-round. A good accountant will not only prepare taxes, but work throughout the year to plan for the next year’s taxes, subsequently saving the business owner a lot of money. A good CPA is well-versed in tax code and knows exactly what loopholes for which a business is eligible and, if not eligible, they will advise the business owner on what actions may be taken to become eligible. This is where the tax planning comes into play. Many times they will pay for themselves simply through money saved by the company as a direct result of their expertise.
In addition, having one prepare tax documents lends an element of credibility to a business’ tax return. They not only reduces the risk of mistakes made that would earmark a tax return for an audit, but also reduces the risk of an audit simply by showing the IRS the tax return was prepared by a true professional, a certified accountant.
They can also be an invaluable business consultant. They already have a perfectly clear financial picture of the company for which they work. Who better to give advice about what the company is capable or incapable of accomplishing in a particular time frame? A quality CPA will be able to give advice on such topics as inventory management, risk management, and marketing. They can act as an effective sounding board for all kinds of financial matters from whether to buy or lease to purchasing of assets. Their success as an accountant is directly related to the success of the company for which they work. Their reputation literally depends on the success of the company and, as such, an accountant wants to see the business for which they work succeed.
When a company finds itself in trouble, a good one will be able to find solutions to these problems and give advice as to the best move to take in the given situation. They will be able to give advice about where to make budget cuts and how much of a budget cut would be feasible. They will be able to do a cash flow analysis to pinpoint exactly where the problem may lie and verbalize to those in decision making roles where liquid assets are available or not available and exactly how much is available.
They not only perform the duties of an accountant, but can also set up the entire accounting system within a company. From utilization of software to setting up internal controls, a good CPA will be able to completely design a company’s accounting department from top to bottom.
It is not as cut-and-dried as it may seem. Each employee of the accounting department only needs access that information that is pertinent to their job duties. All nonessential information made available to employees who do not need it risks putting that information into the wrong hands. This can be detrimental to a company. By setting up internal controls and duty separation, a CPA is able to manage these risks effectively and ensure important financial information stays private.
They can also able to help with setting up accounting software and training for those who will be using it. Computers and software are only valuable tools when used effectively. Proper training is essential to ensure the investment made in accounting services is not wasted.
Payroll can be a tricky subject, especially with regards to payroll taxes. CPAs are well-versed in these areas and can ensure a company is compliant with tax codes and their subsequent deadlines.
Organizations never seem to utilize them to their fullest capacity, yet have extensive command of the financial domain and businesses could benefit immensely from properly engaging them. Time is precious and instead of spending hours on reviewing and sorting finances, it is much more efficient and cost-effective to hire a professional who is specially trained in this field.
For more information, give us a call directly at 1-818-242-4888 to learn how we can help you or your business be more efficient and potentially more profitable.
*Note: We are not CPAs – we are enrolled agents