As a Certified Public Accountant (CPA), one might assume that the primary focus is on taxes. While tax preparation is a critical part of the job, it is not the only value that CPAs can bring to the table.
Businesses need to recognize the full range of services that a CPA can provide and the potential benefits of utilizing these services to help grow and prosper.
One of the primary value-adds that a CPA can offer is financial statement preparation and analysis. CPAs have the expertise to create accurate financial statements that provide business owners with a clear picture of their financial health. Additionally, a CPA can help interpret these financial statements, identify areas of improvement and make recommendations for how to increase profitability and minimize risk.
For example, a CPA might review a business’ balance sheet and identify that they have a significant amount of cash tied up in inventory. The CPA could suggest implementing inventory management software to improve inventory turnover and free up cash that could be invested elsewhere in the business.
Another area where a CPA can add value is in strategic planning. By working with business owners to develop a long-term vision, a CPA can help guide the company’s financial decisions toward achieving its goals. This might involve creating a budget, forecasting future revenue and expenses or analyzing the financial impact of potential growth opportunities.
For instance, a CPA could help a business owner assess the financial feasibility of opening a new location or expanding their product line. By examining the company’s financial statements and performing market research, the CPA can provide valuable insight into the potential risks and rewards of these opportunities.
A CPA can assist in navigating complex financial regulations and compliance issues. For example, a CPA can help businesses ensure they are complying with local, state and federal tax laws, as well as other financial regulations such as the Sarbanes-Oxley Act (SOX) or the General Data Protection Regulation (GDPR).
Additionally, a CPA can provide financial guidance during significant business events, such as mergers and acquisitions or succession planning. By evaluating financial data and working with other professionals, such as attorneys and investment bankers, a CPA can help ensure that these transactions are financially sound and legally compliant.
In conclusion, CPAs can provide a wide range of value-add services beyond just tax preparation. Business owners need to recognize the full range of expertise that CPAs can bring to the table and leverage their skills to help grow and prosper. Whether it’s financial statement analysis, strategic planning, regulatory compliance or guidance during significant business events, CPAs are a valuable resource for businesses of all sizes. By working with a CPA firm that provides these value-add services, business owners can gain the financial insights they need to make informed decisions and drive success.
Chase Bush, CPA, is the managing partner for Bush & Associates.