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How to Find the Best CPA bookkeeping for Your Startup or Small business?

Posted on 25/11/2022

“Choosing the Right CPA Accountant for Your Business. Finding a decent accountant is so challenging that it has even given rise to a running joke among small business owners or founders of startups.”

While doing your own books may seem like a cost-effective option, hiring a professional bookkeeper for your business might end up costing much more in the long run.
Employing a certified public accountant (CPA) may help you save time, money, and potentially even your sanity because startups frequently deal with sophisticated tax and accounting issues including cash flow management, compensation issues, and venture capital financial due diligence.

Numerous factors will affect how much a small business or organization will pay for CPA bookkeeping rates. Accounting work completed by a CPA accounting firm, you’ll find a range of $150/hr to $450/hr. The size and stage of the company, the volume of monthly transactions, the number of workers and the manner in which payroll is handled, the number of expense accounts and credit cards, the volume of invoices to be sent out and paid, the number of balance sheets to be reconciled, etc.

Your expenses will be affected by how your accounting systems, rules, and processes, as well as your reporting requirements, are set up and managed, in addition to these fundamental bookkeeping tasks.

What Do Velan CPA bookkeepers for Small Businesses Do?

Small business accountants like Velan CPA bookkeepers are experts with the expertise and understanding to guide owners through their financial records. They are frequently Certified Public Accountants (CPAs). These accountants could operate on a monthly, quarterly, or yearly basis, depending on the size and requirements of the company.

Small businesses frequently enter into agreements with accounting firms or individual accountants who provide the services they require, unlike bigger organizations that frequently employ accountants. CPA bookkeeping provides a wide range of services tailored to the requirements of freelancers and small company owners. The majority of Velan CPA bookkeepers offer firms specialized service bundles and extra knowledge. One of the services a CPA provides is:

  • Tax Return Preparation

Tax return filing for both individual and company filings is one of the key services a CPA does. The only people qualified to file returns are those with a current Personal Tax Identification Number (PTIN). Small company owners and independent contractors often seek the assistance of Velan CPA bookkeepers because many accountants and bookkeepers decline to file returns. Working with a CPA also gives you the assurance that you are claiming all permitted self-employed tax deductions.

  • Tax planning

Our CPA can assist you in reducing your tax liability. Because every organization is unique, you will need a specialist to identify tactics that are adapted to your particular circumstance.

  • IRS correspondence

The IRS or a state agency will frequently write to small company owners and independent contractors at some time. You need a CPA’s advice to determine whether the fines and penalties can be reduced. After you’ve completed a Power of Attorney form, many CPAs can communicate with the IRS and other authorities on your behalf, relieving you of this responsibility.

  •  Consulting

Our CPA can help you understand the financial and tax ramifications of every business decision, including succession planning and growth strategy. A transparent understanding of the consequences of tax is the foundation for good growth and the capacity to reduce taxes.

  • Financial Statement Preparation

Our CPA may also prepare financial statements for your company as a standard service. Financial statements must be prepared by an impartial third party for compilation, reviews, and audits. Because of their independence, which they value highly, CPAs can provide your company with accurate financial statements that can be given to lenders, investors, and other third parties.

What is a CPA vs. an accountant?

All that distinguishes CPAs vs. accountants are their credentials and skill level. Accounting is a profession, however, not all accountants are CPAs.
A bachelor’s degree is a requirement for an accountant, although a license or certification is not. Bookkeeping, tax preparation, profit-and-loss statement preparation, and financial and tax planning are all tasks carried out by accountants.

To become licensed, a CPA must, however, satisfy the state’s educational and experience criteria and pass the demanding Uniform CPA Exam, which includes both basic business knowledge and accounting issues.

This also implies that a CPA’s fee structure is often more expensive than that of a regular accountant. CPAs may provide a wider variety of accounting services and can play a more advisory or strategic role in the financial operations of your business.

Why CPA is Necessary for a Startup

An accountant is a specialist who handles all the intricate and crucial arithmetic activities associated with running a business, including accounting, financial planning, and the preparation of tax returns and profit-and-loss statements.

An accountant who has passed their state’s Uniform CPA Exam and satisfies the educational and experience criteria of their home state is referred to as a Certified Public Accountant (CPA).

In other words, all CPAs are also accountants, but not all CPAs are accountants. A CPA can do all of the following responsibilities in addition to offering sound advice and assisting you in making the proper decisions. However, since this is your business, a CPA cannot make business decisions for you.

  • Assist your company in reducing taxes today and make arrangements for upcoming tax circumstances. Identify any issues with your tax returns before the IRS does with the help of audit and assurance.
  • Management and consulting: Assist in budgeting, risk management, and the creation of financial statements for shareholders. Act as your company’s chief financial officer (CFO).
  • Investigate the financial records to assist you to stop or find theft or fraud using forensic accounting.
  • Payroll administration: Ensure that everyone is paid promptly and that all payroll deductions are processed properly.
  • Bookkeeping: Take care of invoices and accounts receivable, see to it that the bills—such as rent and utilities—are paid promptly, and make prompt payments to your suppliers.

As you can see, a CPA can assist you with much more than simply tax preparation and bookkeeping. It’s time to start looking for a CPA you’d genuinely like to hire once you’ve decided what services you need from one.

Choose if you want an internal or external accountant.

If you want your accountant to handle a specific type of job, think about whether you have enough work to keep an internal or in-house accountant occupied. Even while having exclusive access to their information could be convenient, you might only require someone on a temporary basis.

Additionally, bear in mind that it is trickier to outsource back-office duties like billing and paying bills than other jobs like categorizing transactions and balancing accounts.

Even if you could choose to work with an internal accountant or bookkeeper, it’s typical to have a CPA from outside prepare your taxes.

For this reason, a developing company would be wise to start by talking with an independent accountant or accounting firm. A full-time employee’s salary and benefits are frequently less expensive than those of an outside firm, and you might get better advice from a CPA or tax accountant.

How do outsourced CPA accounting firms?

Business process outsourcing, or BPO, is a means to outsource your company’s daily activities, including marketing, data processing, and web development. A BPO that specializes in accounting is someone who can manage the financial part of your company.

Offshore CPA firms must maintain financial records to manage the budgets, comply with regulations, and learn about your company’s financial viability.

Although there are many outsourced CPA accounting firms, Velan CPA Bookkeepers is your one-stop shop for proficient, high-quality, and outsourced accountants.

Expertise with accounting software

If you currently use accounting software like Xero or QuickBooks, make sure your potential CPA is familiar with how to use it. This is especially crucial for any software that is industry-specific. For instance, the financial toolbox for a SaaS firm differs from that of a company developing mobile applications.

Your CPA will be able to use the program right away to examine your cash flow, inventory control, and pricing if they are familiar with it.

Consider the CPA accounting firm credentials

You should confirm that an accountant has the necessary certifications before hiring them. If they identify themselves as a CPA, it signifies they have passed the exam and have been granted a license by your state. CPAs maintain their licenses by completing continuing education requirements and staying current on all federal, state, and local tax rules.

Some CPAs also hold additional credentials, including those for Personal Finance Specialist (PFS), Certified Valuation Analyst (CVA), and Accredited in Business Valuation (ABV), among others.

Those qualifications are probably genuine if you get the endorsement from the IRS, your state’s board of accountancy, or a state CPA organization. However, if you got a recommendation or looked them up online, you might wish to check CPA Verify, an online central database that has details on authorized CPAs and public accounting companies.

Before making a choice, be sure to enquire about references and talk with a few of your potential accountant’s clients.

A competent CPA can set up your startup for financial success.

For first-time founders, in particular, launching a firm can be both an exhilarating and intimidating experience. In the early stages of any startup, revenue and finance are crucial, and poor financial choices for accounting businesses may make or ruin your company.

Making wise company decisions supported by trustworthy accounting and precise bookkeeping will help safeguard your investment. But who has time for everyday accounting tasks when your business is just getting started?

A startup CPA may be a fantastic resource for guiding you through financial and business issues and helping you avoid expensive blunders so you can focus your energies on other crucial activities like strategy, growth, and scalability.

How Velan can be useful

As the creator of a business, you have a lot of obligations to meet, especially in the beginning. You don’t have to make keeping up with your books one of them. Paying a CPA rate for accounting services may not be financially advantageous for you if all you now require is someone to monitor your monthly finances.

If you outsource your accounting to Velan, you’ll have reliable, current financial information that may be used for tax planning and preparation, small company loan applications, strategic consulting, or audited financial statements.

Velan and a CPA complement each other well. Let’s face it: sound bookkeeping is the foundation of all sound tax planning, accounting counsel, and consulting services.

Consider utilizing Velan in conjunction with a CPA if you want to save yourself time, money, and a lot of hassles. After that, you may resume expanding your business empire.

Our Bookkeeping Experts are here to help.

Topics: CPA Bookkeeping




About the Author:

Pramod has over 11 years of experience relating to finance and accounts in diversified industries. He is an expert in resource and process optimization resulting in greater operational efficiencies.

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