Why You Should Hire a CPA Consultant as a Small Business Owner
Certified public accountants are good for more than just doing your taxes. It's very likely that your CPA has a wealth of knowledge that you are not utilizing if you're only using them for routine things like tax filing or bookkeeping. Today, I'm going to share with you some reasons why you should consider hiring your CPA as a consultant for your business and your goals, even if it is only for a couple hours a month to review some numbers or talk through a business plan.
They have seen other businesses succeed and fail, and can help you find your next steps. Every business starts somewhere, and every business owner is on a different step on the path to success. While it is true that not every business will follow the same path, CPA's get a unique insight into the successes and failures of other businesses which can be used to direct your efforts and attention.
They can be your objective analyst and advisor. In the process of finding and discussing the key financial and other performance indicators of your business, it's likely that your CPA can see things that you can't. You might be holding too much cash, focusing on the wrong customers, or not investing in the right areas. Whatever the case may be, having an experienced and fresh set of eyes on your business is a great way to get ahead of things.
They have a network. In the ordinary course of their work, CPAs tend to interact with a lot of different people and businesses, and if the right opportunity comes along, they will certainly leverage their network to help you. Looking to hire someone? They probably know a recruiter (or many of them). Need a different professional like a marketer or video editor? They can ask another client for a recommendation. In any case, utilizing your CPA as a business advisor and having thoughtful conversations about your business can unlock some very important network connections.
How Do I Engage My CPA as a Consultant?
The first thing you should do is ask your CPA if they have the capacity to meet with you on a regular basis to review financial information and business goals. The frequency and duration of these meetings will depend on what you need, some business owners will prefer meeting for a few hours a month to go over monthly financial information while others might want to do a quarterly check-in for about an hour to ask any questions without any formal financial reporting involved. When deciding what is right for you, make sure you are realistic in terms of what you actually need and can prepare for. For example, you shouldn't ask for a monthly financial review if you can't get that information together timely. Once you find a scope that works for you and your CPA, commit to it!
Lastly, it's important to remember that it is never too early or too late to engage a CPA as a consultant to help direct your business goals. Many aspiring business owners probably need to speak to one just to understand the numbers behind their idea. So if you're reading this and thinking that your business (or idea) is too small or too mature to need a CPA consultant, think again! In fact, if you are one of the first five people to send me a message through the contact page outlining your business and what you think you need help with while mentioning this post, I'll meet with you for an hour free of charge!