Which Type of Accountant Do You Need?
You are a small business owner. Your business is profitable and growing and you need to hire an accountant or an accounting firm to handle your books. You recognize the value and insight that a seasoned accountant can offer in strategically growing your business. You have always heard that CPAs are the best of the best. Should you hire a CPA?
Let’s start with a Myth. Most people believe that CPAs (Certified Public Accountants) are the most competent, educated, and accomplished accountants for all businesses. Most believe that if they could only afford it, they should consider hiring a CPA for their small business (profits of $1 million dollars or less). This is simply not true!
What is True is that a CPA has a college degree in accounting and has passed four very difficult, stringent, and comprehensive exams—tests that many fail. They have also completed a 3000-hour internship at a public accounting firm, which eventually results in their receiving the honor of being able to market themselves as Certified Public Accountants. What is also true is that they are very accomplished and competent in many areas of the accounting field. They are accountants that deserve our respect, but, and here’s what you need to know: most are not likely the best choice for your small business.
What is the Fiction regarding a CPA being the best choice to be your accountant? The overwhelming majority of CPAs eventually work in two areas: 1) tax preparation, or 2) working in a public accounting firm. If they work in public accounting, they focus on audits, fraud & forensic accounting, litigation, mergers & acquisitions, succession planning, government, and non-profits. Do you hear anything here in this description about small business accounting and helping the small business owner increase profits? Just because someone has obtained their CPA license, it does not mean they have specialized knowledge of the “on the ground” workings of small businesses. Did you also know that most CPAs will almost certainly cost more that a seasoned business accountant?
What is the Reality regarding accountants serving small business? They are not generally CPAs. They could be accountants with an MBA (masters degree in business administration) or accountants with an MMS (masters degree in management). However, most capable small business accountants are simply those who have been working in the trenches offering their experiential knowledge and advice. This is their passion, their focus, and where they choose to operate. They work with their clients to increase profits and manage their cash flow. They help them achieve a peace of mind with the financial side of their business that typically produces stress and anxiety.
These are the areas you should be exploring with a business accountant:
- Forecasting & Planning
- Job Costing & Product Line Assessment
- Comparing Actuals to Forecast
- Margin Management & Expense Controls
- Cash Flow Analysis & Management
- Bank Loan Acquisition & Applications
Resolution Accounting is one of the premier accounting firms in the Philadelphia area, one that specializes in small businesses (profits of $ 1 million dollars or less). It has been in business for more than twenty years and has a wealth of financial experience that can help your business —no matter what stage of growth you are in. Resolution Accounting is one of the few firms that offers bookkeeping, accounting, and CFO advisory services —all under one roof. That means you can get qualified and competent people [ST3] to manage your accounting needs, no matter your budget.
If you’re ready to dispel the myth of the CPA and hire a real business accountant who can help guide your small business toward profitability and growth, give Resolution Accounting a call or send an email today.
