What Does a CPA Do for a Small Business?
Quick Answer
A CPA helps small business owners understand and manage the accounting side of their business. Depending on the services they offer, a CPA may help with bookkeeping, reviewing financial records, answering accounting questions, working with QuickBooks, and helping you better understand your numbers.
AZ Easy CPA provides CPA and bookkeeping services in Chandler, Arizona and beyond, helping small business owners keep their financial information organized and easier to understand.
What Can a CPA Help a Small Business With?
A CPA can help with different parts of your business finances. Exactly what they handle depends on the CPA and the services their firm provides.
A CPA may help with:
- Bookkeeping
- Reviewing financial records
- Understanding financial reports
- Answering accounting questions
- Reviewing or helping with QuickBooks
- Cleaning up bookkeeping that has fallen behind
- Finding problems in your financial records
- Helping you understand how your business is doing financially
- Providing other accounting services
Some CPAs specialize in certain areas, so it’s always a good idea to ask what services are actually offered.
How Can a CPA Help Me Understand My Business Finances?
Running a business means dealing with a lot of numbers. You have money coming in, bills going out, business expenses, bank accounts, credit cards, and possibly loans or other payments to keep track of.
A CPA can help you understand what those numbers mean instead of simply looking at a bank balance and guessing how the business is doing.
For example, your financial reports may show that the business brought in plenty of money during the month, but they can also show how much was spent to earn that money. A CPA can help you understand the information in those reports and answer questions when something doesn’t make sense.
Does a CPA Do Bookkeeping?
Some CPAs and CPA firms provide bookkeeping services, while others don’t. Bookkeeping is the regular work of keeping your business financial records organized and current.
This may include recording money coming in and going out, organizing expenses, checking your bank and credit card accounts, maintaining QuickBooks, and making sure transactions are recorded correctly.
Working with a CPA firm that also provides bookkeeping can make things simpler because your regular financial records and accounting support can be handled in the same place.
When Should a Small Business Talk to a CPA?
You don’t necessarily need to wait until there’s a problem to talk to a CPA. You may simply have a question about your books or want to make sure you’re handling something correctly.
It may be time to talk with a CPA if:
- You don’t understand your financial reports
- Your bookkeeping has fallen behind
- You’re unsure whether QuickBooks is correct
- Your bank account doesn’t seem to match your books
- You have questions about the accounting side of your business
- Your business is growing and your finances are becoming harder to manage
- You want someone to review your financial records
Getting answers earlier can often make it easier to keep your financial records organized going forward.
Why Does Good Bookkeeping Matter to a CPA?
Good bookkeeping gives your CPA accurate information to work with. If your books are missing transactions, expenses are in the wrong places, or accounts haven’t been checked, it can be harder to understand what is really happening with the business.
Think of bookkeeping as keeping all the financial pieces organized. Your CPA can then look at those pieces and help you understand the bigger picture.
Keeping your bookkeeping current throughout the year also means you don’t have to try to remember what happened with transactions from months ago when your CPA needs information.
Frequently Asked Questions
Is a CPA the same as a bookkeeper?
No. A bookkeeper generally handles the regular organization of your financial records. A CPA has additional education, testing, and licensing and may provide services beyond everyday bookkeeping.
Is a CPA the same as an accountant?
Not exactly. A CPA is an accountant who has met specific education, testing, and licensing requirements. Not every accountant is a CPA.
Can a CPA help me with QuickBooks?
Many CPAs and CPA firms work with QuickBooks. Depending on the services offered, they may help with bookkeeping, clean-up work, QuickBooks questions, or reviewing your financial information.
Does every small business need a CPA?
Not every business needs the same level of CPA support. Some small businesses only need occasional help, while others work with a CPA more regularly as their finances become more complicated.
Can a CPA fix bookkeeping that is behind?
A CPA firm that provides bookkeeping clean-up or catch-up services may be able to help organize old transactions, correct mistakes, check accounts, and bring your books current.
Looking for a CPA or Bookkeeping in Chandler, Arizona?
AZ Easy CPA provides CPA and bookkeeping services in Chandler, Arizona and beyond. If you have questions about your numbers, need help with QuickBooks, have fallen behind on your bookkeeping, or simply want someone to help you understand the financial side of your business, reach out to Chris at AZ Easy CPA.
Chris can review where things stand, explain what you’re looking at in plain English, and help you figure out what kind of bookkeeping or accounting support makes sense for your business.
