5 Functions Of A CPA For A Small Business In 2024

Business owners find it difficult to manage financial tasks. That’s when you need a certified public accountant or a CPA in Centennial, Colorado. A CPA is a professional expert who closely understands your financial needs. Further, they prepare strategies to meet goals. As a small business owner, if you’re considering hiring a CPA in 2024 and thinking about its key functions, we’ve got you covered. This article highlights the top functions of a CPA. Here we go! 

Introduction To A CPA 

A certified public accountant, is commonly known as a CPA. They are accounting professionals who have completed their education. These professionals also have the required experience and fulfill licensing requirements. Some major services offered by a CPA include:

  • Bookkeeping 
  • Forensic Accounting 
  • Tax accounting 
  • Tax planning and preparation 
  • Taxation 
  • Auditing 
  • Internal auditing 

Functions Of A CPA In A Small Business 

1. Financial planning 

A CPA is a professional expert who closely evaluates the data and conducts financial planning. They also identify growing trends based on which new budgets are made. They also help your business to manage cash flow. As experts, a CPA mitigates financial risk factors, ultimately maximizing profits. 

2. Bookkeeping 

For any business, completing and managing books is a hectic task. This requires professional expertise as it is a complicated procedure. A CPA provides complete assistance in the bookkeeping process, boosting your business’s financial health.

3. Tax accounting 

Planning tax strategies can be complicated for every small business owner. Since any mistake in taxation can result in hefty costs. Thus, you need experts to manage your taxes effectively.

4. Compliance and risk management 

CPAs assist companies in navigating complicated financial requirements and guarantee that tax laws and accounting standards are followed. By doing this, dangers can be reduced, and expensive fines or legal troubles can be avoided. 

5. Preparing and forecasting budgets 

In a small business, a Certified Public Accountant (CPA) might take part in the budgeting process. These include:

  • Estimating sales and examining profit margins
  • Taking care of receivables and payables
  • Directing the reconciling of ledgers
  • Presenting the financial situation of the organization to senior managers
  • Coordinating with tax accountants to monitor tax returns and payments

Wrapping Up! 

Small business owners see hiring a CPA as an additional cost. However, it is a great investment in 2024 as they perform countless functions rightly. If you find accounting management problematic, hire a CPA!