Owning your own small business is a great feeling, and if you’re like many others, these feelings are likely to present as personal strength, confidence and independence. There’s no doubt that every aspect of your business is important but, for several reasons, your business’ finances should be at the top of your most watched list. So, while you could hire a person who’s good with numbers, the truth is that he or she may not be an actual small business accountant with the knowledge to guarantee a stress-free tax time.
Think it’s time to hire a pro? Don’t wait—there’s no time like the present to seek out a professional certified public accountant! To help you with your search, here are some of the most common mistakes to avoid as a small business owner when looking for a CPA in Sacramento, CA.
Hiring the first accountant you meet
Indeed, you may like everything about the first accountant you interview. Their personality matches your own, they’ve presented themselves well and they have accounting experience. But do they have the right kind of tax and accounting experience for your particular type of business? Recording small business bookkeeping information and maintaining expense reports requires a keen eye, and it’s different from doing individual finances. So, if they have the right qualifications to work as an accountant, but don’t possess the necessary knowledge about the industry you are in or even about small business accounting in general, you will want to interview others.
Not writing down your business’ needs
As a small business owner, you are either meticulous about noting every aspect of your daily business operations or you lack the bug for caring about detail. Whichever describes you, it’s crucial that you get organized and write down your business’ needs before heading off to the hiring process. If you’re the less detailed-oriented type, get other team members to help you out. At the top of your interview notes should be questions pertaining to your business and industry, as well as questions that will give you a better understanding of a CPA’s knowledge in the area of small business finances.
Thinking you can do some or all of the finances
There are three likely scenarios here: 1) You let a current employee who is somewhat finance-savvy take on the responsibility, 2) you think you can do all of the business finances yourself or 3) you assume you’ll have the time to cram in financial record-keeping in between your other million responsibilities. If you think not having to hire a professional CPA in Sacramento, CA will save your business money, you may want to think again. While doing the finances yourself may save money in the short term, doing so can show a loss in the long run, as well as unintentionally reporting the wrong tax information.
For your business to succeed now and remain firmly in the game for a long time, you must take your business’ finances seriously—even if that means bringing someone in to help. Contact the team at Yoder & Co., CPA to speak with a qualified CPA in Sacramento, CA today!