Many small and medium-sized businesses rely on bookkeepers and accountants for routine financial needs, such as accounts receivable, accounts payable and payroll. While these roles are essential, there are some cases when a higher level of expertise is necessary, and you'll want to engage with a professional with more education, more experience and the proper licensure. That's where Certified Public Accountants come in.

When You Need a CPA

Collecting payments, paying bills, reconciling bank statements, and preparing reports are all perfect tasks for your bookkeeper and staff accountant. However, in the following situations, it's best to hire a business CPA:

1. Starting a New Business

Should you set up an S-Corp, C-Corp, LLC, or sole proprietorship? What are the differences and obligations? What are the tax implications? Arranging the proper legal structure for your new business from the start is critical for its long-term success, and a CPA will help you do just that.

2. Tax Returns

The only thing worse than paying your tax bill is fixing your tax mistakes after the IRS has discovered them. Tax preparation software or inexperienced individuals are not the right choices for businesses. Not only will it be more likely for costly errors to be made, but you may also be paying more taxes than you are obligated to by missing out on key incentives and strategies. Additionally, when an audit is declared by the IRS, you'll want someone who is certified to represent you in front of the IRS.

3. Financial Downturns

Every business will have them – eventual downturns are unavoidable and often the result of economic conditions rather than poor decisions made by the business. Surviving these events is possible, given you have the right advisors. A CPA has a unique, big-picture view of your company's finances and overall economic conditions and can help you make better long-term decisions while evaluating the risks and potential outcomes of your options.

4. Annual Checkups

Your CPA can do a financial checkup annually or quarterly to ensure your sales, profit margins, cash flow, inventory, payroll, and benefits are all on track and in line with your budget, and help you make any necessary adjustments to ensure it stays that way.

5. Formal Financial Statements

Basic reports are fine to be handled by your bookkeeper and accountant, but a seasoned CPA should prepare formal statements. In most cases, your accountant will gather the information and prepare documents for the CPA who will then compile the reports and verify their accuracy – which may be necessary when working with lenders. Reviews and formal audits can also be performed by a CPA to ensure all your records are accurate, something that's typically required prior to the sale of the business, a merger or other major decision, and something that should be performed periodically by every company to ensure proper record keeping.

Reliable Services from Licensed Professionals

When you need to rely on an experienced professional who has the licensure and experience to handle any of these situations, you can count on the Certified Public Accountants and Business Advisors at Fair, Anderson & Langerman. Contact our Las Vegas accounting firm at 702-870-7999 to learn more about how we can help your business succeed.

5 Times to Hire a Business CPA