When you’re starting out with a business or going into a growth of sales and revenue, your finances are going to come across more challenges as the balance sheets become thicker. Managing those finances is an ongoing process, and each year you need to be prepared for tax filing as well as having statements ready when you apply for financing. The answer to getting your financial statements and taxes prepared seems simple enough; you just hire an accounting firm right? No, not just an accounting firm; CPA accountants in Baltimore are professionals who have passed the state licensing exam and maintain the highest industry standards, and they can do so much more for your business.
Representation During An IRS Audit
First and foremost, a CPA accounting firm will look to minimize the chances that your business gets audited by the IRS as much as possible by eliminating discrepancies from your reports and claiming tax credits you are in fact eligible for. But in the unfortunate event, you do become subject to an IRS Audit, a CPA has the license to represent you and deal directly with the agency so you don’t have to pay penalties that you shouldn’t. What they can do is guide you through major business investment or financing decisions you make throughout the year and have you in the know about what this will mean for filing taxes at the end of the year. Plus, CPAs can conduct their own audits on your business which can give your financial statements even more credibility.
Providing Comprehensive Business Plan Advisory Services
CPAs and their accounting teams are not just there for tax filing, payroll, and financial report compiling services. Many of them are also willing to sit down with you and analyze your written business plan, and in many cases, they’ll suggest strategies that can greatly improve it. Many CPAs have insights from business startup data, and with expertise in different industries, they can tell business owners where their plans are primed for growth and where they could stand to improve them a little. Just about everything you do from structuring your leadership hierarchy, formulating your sales strategy and investing in different marketing vehicles will have a lot of impact on where you’ll be financially down the road, and this is where it can help to have a CPA analyze your current plan. They can sift through current industry data, look at similar business models and prototypes, and offer a risk assessment kind of view for your business and suggest changes where they may feel you could improve your overall performance.
Forensic Accounting In Some Cases
Not every accounting firm offers forensic accounting specifically, but you could greatly benefit from those who do. Sometimes areas of fraud or fund embezzlement can show up in accounts payable or accounts receivable, and if a CPA has extensive experience in analyzing these documents, they may be able to prove you’ve been a victim of fraud. Cases like this may be unlikely for small business owners, but in the event, you do have to go to court to produce evidence in a civil or criminal financial matter, a CPA with forensic accounting experience can help you in the matter.
Conducting Business Valuations
There are many cases that require a business to have its assets appraised, especially when you need a bank loan or are planning to sell or liquidate your assets. Many CPAs can get an accurate assessment of your hard assets as well as having a proven method for analyzing your cash flow. Usually, there is additional certification needed to be a qualified business appraiser, but by choosing a reputable Baltimore CPA accounting firm where this is offered you’ll already have a leg up.