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13 Ways a CPA Can Help Your Business

A CPA is an accountant who has passed the Certified Public Accountant exam and meets the qualifications to be a licensed CPA in their state. CPAs can help businesses in a variety of ways.

This post comes to you in conjunction with a Personal Profitability partner.

Bookkeeping Records

Many businesses employ bookkeepers or use bookkeeping software to track their own finances. A CPA can review these records for accuracy and compliance with the law, and use this information to prepare tax documents and provide financial advice. They can also help you set up your record-keeping procedures if you’re just getting started or give you suggestions for improving your current system. 

Financial Statements Audits

An audit is an independent examination of a company’s financial statements. After auditing the statements, the CPA issues a report with their opinion of the statements. These reports are required by some government agencies, such as the SEC. Additionally, publically traded companies are required to be audited once a year and must furnish the audit reports to any shareholders they have. Creditors may also sometimes request these reports. 

Break-Even Analysis

A break-even analysis is an important tool for businesses that are considering expanding their operations, offering a new product or service or making a major purchase. A CPA can perform this analysis, which includes a comparison of current costs and revenues versus projected costs and revenues after making the proposed change, to determine how much revenue would need to be generated to reach the break-even point if the change was made.


Whether you need a loan to get your business started or to make a major purchase or fund an expansion, you will need to make the case to your potential lender that your business is a good financial risk. A CPA can help you make your case by gathering the necessary information, investigating different funding sources, and completing a compelling loan application. They can also help answer any questions the lender may have about your business’s ability to repay the loan.

Tax Advice

CPAs are required to have a thorough knowledge of state, local and federal tax laws in order to pass the CPA exam and maintain their license.  CPAs can provide advice to help you stay compliant with tax laws, keep efficient and accurate records, and maximize tax deductions. They can also prepare and file your tax returns and represent you in the event that your business is audited by the IRS. Additionally, they can assist with calculating estimated taxes that may need to be paid throughout the year, payroll taxes and other tax obligations. 

New Businesses

If you are planning on starting a new business, a CPA can help you with the process by drafting your business plan, choosing and setting up your accounting software, making sure your accounting procedures comply with the law and helping you determine the best legal structure. Getting financial advice from the start of your business can help you avoid any costly mistakes that could derail your start-up or get you in trouble with the law. 

Financial Health

A CPA can help you evaluate the financial position of your business and give you advice on how you can improve it. Many businesses choose to have their financial health evaluated once per quarter so that they can stay on top of financial trends and fix issues or take advantage of opportunities promptly. CPAs can also help prepare quarterly reports for stockholders, creditors, and others. 

Risk Management

Businesses face many different kinds of risks. CPAs have been trained to spot potential risks and recommend solutions. Risks that a CPA might evaluate include uninsured or underinsured property, liability risks, legal compliance and security threats. 

Key Performance Indicators

Key performance indicators are performance measures, such as job cost, inventory turnover or daily sales that can be used to judge the success or failure of a particular aspect of your business. CPAs can help you identify what your key performance indicators are and how to use them when evaluating your business operations. 

Chief Financial Officer

Small businesses may find it more economical to outsource the duties performed by a Chief Financial Officer to a CPA. CFOs typically oversee activities such as bookkeeping, financial statements, cash flow management, and forecasting, payroll, tax obligations, and reporting. 

Business Value

There are many reasons you may need to know the value of your business, such as seeking financing or investors, deciding whether to sell your business or planning for retirement. A CPA can both help you calculate the current market value of your business and help you maximize that value. 


It is common practice to have an attorney review contracts and other important documentation to ensure compliance with the law. It can also be a good idea to have a CPA review any contract that could have financial consequences. A CPA can make you aware of any tax or cash flow implications and suggest any changes to the language that might be necessary. 

Business Operations

CPAs can help with day-to-day business operations in a number of ways. A CPA can explain your financial statements to you, ensure that employees and contractors are classified correctly, provide tax advice, and handle payroll. If you’re not sure where to find a CPA to assist with your business operations, you can use the CPA Directory website to locate accounting professionals in your area.

Whether you need a professional to oversee the finances of your company or you just need to get your taxes done, a CPA can be an asset to your company. CPAs provide expertise and advice that can help almost any business improve its operations. 

This post comes to you in conjunction with a Personal Profitability partner.

13 Ways a CPA Can Help Your Business
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