The trick to creating a successful startup is to have a solid team that shares your vision and a smart business strategy.
Since you’ll be handling a myriad of responsibilities, it can be easy to get caught up in expanding your company. But considering growth will require you to spend money, one of the biggest mistakes a startup can make is not keeping track of its finances.
To prevent you from making the same error, having a Certified Public Accountant (CPA) in the early stages can keep your funds in check.
How can a CPA help a Startup?
You have to admit, onboarding a CPA to your startup won’t come cheap. But if you think about what a professional can bring to your company, the price can turn into a worthy investment.
If you’re still not convinced that having a CPA on your team is beneficial, here are a few ways they can help you establish your company:
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Organized financial system
One of the major roles a CPA can do is to keep your financial records organized and updated to prevent your operations from running into complications in the future.
A few of their responsibilities will include bookkeeping, creating financial reports, data analysis, updating accounting software, and keeping an eye on expenses.
Since they have your financial data, they’ll also be able to help you create a realistic budget that can prevent your startup from sinking. Predicting how much funding you’ll need to achieve your next milestone would also be possible, so you can create an effective strategy to obtain your goal.
Better business strategies
If you don’t have previous experience with running a startup company, having a skilled CPA on your team can help you come up with a smart business strategy that will allow you to stand out against your competitors.
That’s why it would be ideal to find a CPA that has a background in your industry so they’ll know how to navigate around common issues that you’ll bump into in your field.
A good CPA will also have the knowledge to manage your finances well so you can collaborate on making a feasible growth plan that won’t be detrimental to your company.
Proof of legitimacy
An integral part of having a successful startup is to have sufficient funding, having a CPA in your lineup can be beneficial for acquiring funds.
Since bank loans would be one of the most prominent options for getting resources, having well-maintained financial records will more likely have your application approved.
Investors will also be more amenable to funding your company knowing there is a professional CPA that manages your finances.
Your CPA can also advise you on how to find the best opportunities to get more support so you’ll only have to focus on creating a convincing pitch.
Tax assistance
Since a startup is not exempt from paying taxes, having a CPA can save you the headache of filing your reports and paying your taxes on time. They can also notify you of any tax law changes and guide you on how to prepare in case it affects your business.
If you want to reduce your startup’s taxes for next year, tax planning with your CPA can also be beneficial for your company in the long run.
Your CPA will also make sure your startup stays compliant to prevent you from being audited by the Internal Revenue Service (IRS). But in the rare case that you do need to be audited, your CPA can represent your company to defend your financial records.
Reliable business advice
If your startup defies the traditional business structure that established companies usually have, it won’t be a surprise if you run into a variety of business and financial issues that you’ll be unfamiliar to navigate. Having a skilled CPA on your team can provide you with a different perspective on how to solve these concerns that won’t damage the integrity of your company.
If you’re thinking about doing any major business changes, consulting your CPA can also be beneficial since they’ll be able to let you know if your finances will be able to handle this development.
Are you ready to recruit a CPA for your startup?
Since a good CPA can be similar to having a business partner, it’s integral to treat the selection process thoroughly so you can get the right one.
The ideal professional would have sufficient credentials and experience that knows how to manage a growing startup. Reliability would also be an important factor since you’ll have to rely on them for making major business and financial decisions.
So if you’re looking for the right CPA, Lear & Pannepacker can provide you with the best professional that suits your company. With varying experiences, the right CPA can help you solve and navigate different business issues to get your startup on track.
