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Why Small Business Owners Should Hire a CPA in Kissimmee

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Certified public accountants can be a valuable asset for a business owner. These accounting professionals are essential for all types of businesses–both big and small. Hiring the right CPA in Kissimmee can help business owners save a lot of time and money in managing financial information. They can help during various stages of business growth.

The right CPA in Kissimmee will not only help in filing taxes, but will also provide valuable advice that will help in streamlining internal operations. A professional CPA in Kissimmee will offer qualified advice regarding estate planning, financial performance, accounting system, and even probate and retirement.

The fact is that a CPA in Kissimmee will turn out be an important member of the team. There are many advantages of hiring a professional CPA accountant. Below are some of the value added benefits for small business owners of hiring a CPA in Kissimmee to manage financial accounts.

Advantages of Hiring CPA Professional for Small Business Owners

Demystify Complex Accounting Concepts

A professional accountant can help simplify the accounting concepts. The professional accountant will shed light on complex financial terms that have a bearing on the company’s finances. The accountant will coach the business owner on how to perform capital budgeting, project evaluation, and optimizing cash flow.

A qualified CPA in Kissimmee have in-depth information on capital budgeting techniques such as Internal Rate of Return (IRR), Net Present Value (NPV), Payback period, Profitability Index (PI), and others. The accountant can shed light on project evaluation techniques to find out the risk and returns of individual projects and portfolios.

Also, a professional CPA in Kissimmee can help in determining financial health of the company through techniques such as ratio analysis, free cash flow analysis, and more. Lastly, the accountant will inform the business owner about efficient capital structure by application of financial models such as Modigliani and Millar (MM) theory, David Durand’s Net Income and Net Operating Income theory, Trade-Off theory, Myers and Majluf Pecking Order theory, Market Timing theory, and many others. The finance professional will weed through the complex financial terms to make it easy for you to manage your financial resources in a highly cost effective manner.

Help in Efficient Management of Business Assets

A professional certified accountant has knowledge of handling business assets such as customer credits, inventory, and cash. The accountant can offer qualified advice on how to manage the business assets to result in optimal efficiency. Efficient management of company’s assets will make the company more cost efficient allowing it to offer goods at lower price to the customers. The end result will be improved profitability for the company.

Timely Filing of Taxes

An experienced CPA accountant has knowledge about complex taxation rules. You won’t have to worry about missing deadlines or paying hefty fees to the tax authority for errors contained in the filed tax form. The accountant will work diligently with you in order to ensure timely filing without errors.

What’s even better is that the professional accountant can inform you about tax credits. You can plan your taxes efficiently by consulting with the accountant with the aim of maximizing tax savings. Proper tax planning with an experienced CPA in Kissimmee can result in savings of millions of dollars. An accountant will use the knowledge of tax laws to suggest actions that can save money, free up cash flow, and fund expansion activities.

Apply Technology to Save Time and Costs

Today’s accountants are not just expert in practical accounting concepts, they also have updated knowledge of computer skills. They can recommend the best accounting software that is suited for small business owners. Also, the accountants can help provide advice on time saving shortcuts that can ease the task in managing accounting functions.

Comply with Federal Requirements

Dealing with federal requirements can be nothing short of challenging for a business owner. Ensuring compliance adds to the complexity of managing a business. This is why a large number of small business owners hire accountants to manage compliance with government requirements. They can help cope with taxation requirements, audit financial documents, prepare financial statements that complies with legal requirements, and ensure updated information about the company with the federal authorities.

The accountant can also help in recording and organizing stock allocation during the formation of the company, as well as when a new partner joins or an old partner leaves the company. You will better handle the payroll and ensure compliance with employee related laws such as those related to worker Industrial Insurance (Medical Aid), Old Age and Survivors Insurance (OASI) and Medicare, worker compensation benefits and other.

Help in Preparation of Detailed Reports

Accountants can also help in creating detailed accounting reports. They can help in generating detailed reports that provides in-depth information about the financial health of the company. The detailed reports will prove invaluable when seeking funds from the investors or creditors. The reports can be included in the business plan prepared for seeking funds from the investors. It will greatly increase the chances of receiving the required funds.

Referrals and Leads

Accountants have a lot of contacts as they provide services to a large number of businesses. They can provide you with valuable leads and referrals. This can prove invaluable in organic growth of your business. The accountants will be able to provide relevant contacts. This can help expand the market base and also improve the opportunity to maximize profitability.

Provide Advice on the Best Legal Structure

Accountants have detailed knowledge about the pros and cons of different legal structures. Different types of business needs are met by different structures. Sole proprietorship is best if you wish to maintain total control in making business decisions. A limited liability structure is best when the aim is to protect personal assets. This form of ownership also allows obtaining a large amount of capital that can be used to fund expansion activities.

An accountant can offer the best advice regarding the legal structure that suits the business needs. Also, the accountant will allow you to avail tax benefits of different forms of businesses. For instance, if you are a self-employed person, the accountant will tell you to offset certain living expenses against the tax.

Allow You to Focus on Strategic Aspects of the Business

The invaluable accounting services of a CPA in Kissimmee can allow you to focus on important aspects of the business such as charting the future direction. You will be able to put maximum time in making strategic business decisions.

The accountant will not just help save time in preparing accounting records, but also provide key financial information that will be used for making long-term business decisions. The accounting personnel can help in appraising projects with a focus on maximizing gains while limiting the risks. The expertise of the accounting professional will prove helpful in growth of the company.

Professional accountants have experience in arranging finances of similar businesses. They can provide invaluable advice to the business owner based on this. You can receive advice regarding setting realistic sales and revenue targets.

In short, hiring an accountant will allow you to streamline your business operations, improve accounting function, and maximize tax savings. The amount saved in this way can be invested in improving the business. Also, a business owner will have more time to focus on important parts of managing the business such as seeking new markets or diversifying the products.

How to Select the Best CPA Professional in Kissimmee

Now that you know the importance of hiring an accounting professional, let’s find out how you can hire the best CPA in Kissimmee. Keep in mind that just as no human is alike, not all CPAs are similar. There is a world of a differences between the services provided by different accounting personnel. The following tips can help you pick the best accounting personnel to aid you in improving accounting functions.

Step 1. Figure Out Your Needs

Before hiring an accounting professional, you must first find out what are your accounting needs. Do you require someone to perform basic bookkeeping tasks? Do you need someone to help in filing taxes? Do you want help in processing payroll? Is the capital budgeting and evaluation task important for your business?

You should come up with a shopping list of services that you require from the accountant. Once you have homed in on the requirements, you should commence the search of the best accountant in Kissimmee.

Step 2. Evaluate Different Professionals

You must evaluate the services of different CPA professionals. You should make sure that you are comfortable working with the accountant. You should be on the same page with the accounting professional.

Once you find accounting professionals with whom you are comfortable working, you should stick with them. Working with the same accounting professional each year will create familiarity with the financial situation. The accountant will quickly spot changes and implement solutions. Year-round accounting personnel will know how to maximize tax savings and improve the financial position of your business.

Step 3. Ask the Right Questions

You should ask appropriate questions to ensure that you hire a competent and experienced professional. Some of the questions that you should ask when hiring an accountant include the following.

  • How long have you been in the business?
  • What licenses do you have? What is the CPA license number?
  • Do you specialize in taxation issues?
  • How do you charge the fees?
  • Do you outsource the work to third party? If yes, what are their credentials?
  • What technological tools are you proficient in? Xero? QuickBooks? Sage?
  • How do you ensure privacy of data? Will you share any information to third parties?
  • What type of specialized services is included in the package?

Once you have asked these questions, the next task is to carry out a quick background check. While this may seem improbable, the reality is that some professionals that are offering accounting or bookkeeping services have no license or formal education. In order to filter out such people, you need to verify the credentials.

Keep in mind that every CPA professional has a license. The license is issued by the state accountancy bodies after the person has fulfilled strict requirements regarding accounting work. The person must have passed the accounting exam that is set by the accountancy body. Also, depending on the state, the an accounting personnel must have certain years of practical experience before a license is issued. The professional must also pass continuing professional education courses that are introduced by the accounting body for its certified professionals.

You should find out the status of the CPA license by visiting the website of the accountancy body. Additionally, you can visit the IRS Office of Professional Responsibility website to find out whether the accountant has been disbarred, censured, or subjected to other penalties for unprofessional work.

Step 4. Select the Most Experienced Accountant

When it comes to accounting, experience counts a lot. Come to think of it, no one would want to hand over important financial data to an amateur. A single mistake in filing taxes can cost the company a lot of money. Also, misrepresentation of the financial position of a company can result in harsh penalties. If you mislead the investors due to presenting wrong accounting information it can even result in jail time.

In order to avoid any type of inconvenience related to financial matters, it is important that you hire a professional experienced accountant. You will not face any problems when you hire a CPA. The reason is that they are offered a license only once they have gained a required number of years of experience. The continuous development courses also ensure that you have the best personnel to handle your accounts related tasks.

Step 5. Select a CPA Professional Experienced in Handling the Same Business as Yours

Keep in mind that accounting is a diverse field. It’s rare for an accountant to be specialized in all fields. You should hire an accounting personnel who has years of experience in handling the same type of business as yours. For instance, if you are an online retail firm, make sure that the accountant has experience in handling accounts of eCommerce firms. Amazon FBA sellers’ accountants are recommended for companies that sell the goods through the online retail giant’s website.

The reason for hiring an accountant who specializes in your field of business is that it will result in qualified advice relating to your line of work. The accountant will quickly spot opportunities for tax savings and provide information to make the operations more cost efficient.

Step 6. Seek References.

Lastly, you should ask the CPA professional to provide you with some references. You should ask for referrals relating to your type of business. Ask the past clients of the accountant about the quality of work. You should ask whether the accountant has displayed high level of professionalism in performing the accounting task. Consider asking three or more references to make sure that you hire the right accountant for your company.

Conclusion

Accounting is not just about crunching numbers. Every part of a business is directly or indirectly linked to accounting. That’s why accounting professionals need to have in-depth information about different functional areas of the business.

Hiring CPA professionals can benefit companies in a myriad of ways. The professionals have experience in working with a large number of businesses. Their audit work allows them to gain in-depth knowledge of business processes. Thus, they are able to offer qualified advice to the business owners to improve their business operations.

An accountant works closely with the company’s employees to extract important information. In this way, accountants are able to examine the company’s financial position in complete detail. Their advice and assistance proves invaluable in improving internal operations.

An important thing to keep in mind is that there are many different types of accountants. You need to hire the right accountant who is the best fit for your company. You should hire an accountant who has experience in handling businesses similar to yours. If you sell goods on Amazon, you should hire an Amazon seller CPA. The more closely related the accountant’s experience to your field, the more is the chance of receiving qualified information in improving your business.

While accounting may not be everyone’s cup of tea, it is still important–particularly for small business owners. Efficient management of financial resources is critical for the success of a company. If you are a business owner, you should do some research, and select the best accounting professional for the your company. The effort will certainly pay off in the end.

If you need more information about accounting and tax services, please contact us at 407-344-1012. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for almost 20 years. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin number, incorporations, and non profit 501c3 tax exempt. (Freedomtax’s accounting and tax professionals are NOT CPA’s. CPA services provided by third party provider.)

Robert AcevedoWhy Small Business Owners Should Hire a CPA in Kissimmee

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