Did you know that 82% of businesses will fail due to cash flow problems?
As a small business owner, you have a lot on your plate. You’re responsible for making sure your company is running smoothly and that you’re constantly growing – which can be tough to do when you’re also doing the books yourself!
It’s hard enough to find the time to grow your business, but it’s even harder when you don’t have the right resources in place. A good small business accountant can help take some of the burdens off of your shoulders so you can focus on what’s important.
Keep reading to learn how to hire the best CPA for your startup or small business!
What to Look For in a CPA for Your Funded Startup
When it comes to looking for a CPA for your startup, there are a few things you need to keep in mind:
1. Check if the CPA Is Familiar With Your Industry
When you’re looking for a new CPA, it’s important to make sure that they’re familiar with your industry. They need to understand the unique financial challenges that your business faces and be up-to-date on the latest changes to the tax code.
A good CPA will also be able to offer suggestions on how to improve your financial operations. Take the time to interview several CPAs before making your final selection, and you’ll be sure to find the right fit for your business.
2. Make Sure the CPA Has Experience Working With Startups
Making sure the CPA has experience working with startups is also critical. Startups have different financial needs than established businesses. They may be seeking funding, dealing with rapid growth, or managing tight cash flow.
A CPA who has experience working with startups will know how to navigate these challenges.
3. Ask for Referrals From Other Startup Founders
Asking for referrals from other startup founders is a great way to find a CPA who has experience working with startups. These founders can give you first-hand insights into what it’s like to work with the CPA and whether they would recommend them.
4. Get a Free Consultation
Getting a free consultation from a CPA is also a good idea. This will give you the chance to ask questions about their services and get an idea of their experience working with startups.
It’s also an opportunity to get a sense of their personality and whether you would be able to work together effectively.
Taking the time to set up a free consultation can save you time and money in the long run by helping you find the right CPA for your startup.
5. Compare Pricing
Cost is always an important consideration when choosing any service provider, but it’s especially important for startups who have limited budgets. You don’t want to choose the cheapest CPA you can find, however, because you may not be getting the best value for your money.
It’s important to find a balance between cost and quality when choosing a CPA for your startup. Once you’ve narrowed down your options, take the time to compare pricing and services to make sure you’re getting the best possible value for your money.
Do You Need a CPA or Will a Bookkeeper Do?
CPAs are regulated by state boards of accountancy and must pass a Uniform CPA Examination to become licensed. CPAs provide a broad range of services, including tax planning, financial statement preparation, auditing, and consulting. They often work with businesses of all sizes, from small to large corporations.
Bookkeepers, on the other hand, are not regulated by state boards of accountancy. They don’t need to pass an exam to become licensed. Bookkeepers generally provide more limited services, such as recording transactions and preparing financial statements. They typically work with small businesses.
So, do you need a CPA for your startup? It depends on your needs. If you need comprehensive services, such as tax planning and auditing, then you should hire a CPA. If you just need someone to record transactions and prepare financial statements, then a bookkeeper may be a better option.
How a CPA Can Help Startups During Due Diligence
Pre-investment due diligence is a critical process for startups. It’s the process of investigating a company before investing. During this process, investors will evaluate the startup’s business model, financials, and legal status.
A CPA can play a vital role in pre-investment due diligence by providing insights into the startup’s financial health. They can review the startup’s financial statements and tax returns to identify any red flags.
They can also guide how to interpret the data. This information can help investors make more informed decisions about whether to invest in the startup.
Taxes – Where Startup’s CPA Can Shine
Taxes are one of the most complex aspects of running a business. There is a myriad of rules and regulations that businesses must comply with. Failure to comply can lead to hefty penalties.
A small business CPA can help you navigate the tax code and ensure that you comply with all the applicable rules and regulations. They can also help you take advantage of tax breaks and incentives. This can save your startup money and help you improve your bottom line.
Hire the Best CPA for Your Small Business
If you are ready to hire a CPA, we have got your back. Propel CFO offers professional accounting and bookkeeping services that will meet your needs. Our experts offer perfect solutions that will help you maximize your profits and save you time.
Stop guessing and stop hemorrhaging. Let’s give you the peace of mind that you deserve. Contact us now for the best CPA services.