How Can an Accountant Help You Grow Your Online Business?

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March 28, 2023 Business

According to the National Association of State Board of Accountancy, there are over 660,000 actively licensed CPAs in the United States. Many of these licensed professionals are interested in helping you grow your online business, but how can they help promote your future success?

What is a CPA, and How Are They Trained?

A certified public accountant (CPA) is trained to provide professional advice on financial matters. They are certified and licensed to provide public accounting services. A CPA can provide expert opinions on vital financial matters like income tax, audits, bookkeeping, and financial advising.

To become a CPA, individuals must pass a difficult CPA Examination administered by the American Institute of Certified Public Accountants. CPAs must also complete continuing education requirements to maintain their licensure. Typically, an accountant who’s looking to study for their CPA will use sites like CPA Exam Guy to find the best CPA exam course.

Once certified, they are expected to hold themselves to the highest ethical standards and stay up-to-date with the latest accounting techniques and developments in financial management.

10 Ways Accountants Can Help You Grow Your Business

As an online business owner, you know how important proper accounting is for a business. But knowing what to do with your finances is daunting. Here’s 10 ways an accountant can help you.

1. Manage Your Financials

The primary goal of an accountant is to help their clients manage their finances, especially in times when the owner is too busy. An accountant can help you create accurate financial statements that allow you to track cash flow, issue invoices, and submit payroll accurately.

2. Tax Preparation

Unlike a bookkeeper, an accountant can help manage your taxes and submit these forms to the IRS during tax season. An accountant knows the current tax laws and can help you prepare your tax forms correctly. They can also alert you to any changes that may affect your business.

3. Create Financial Strategies

Financial forecasting plays an important role in business growth, as it helps you plan ahead and strategize. An accountant can advise you on the best strategies to ensure your business is profitable. They can recommend how to reinvest profits or create new revenue streams.

4. Monitor Your Spending

Unsurprisingly, a lack of adequate funds is the main reason why businesses fail. This is a big reason why creating and following a budget is so important. An accountant can monitor your expenditures and approve or reject any new costs that may affect company profitability.

5. Submit Applications

There are so many documents a business has to sort through, fill out, sign, and submit. It can get really confusing, but an accountant can help you prepare and submit applications for grants and funding. Not only does this save you time, but it also gives you the funding you need.

6. Handle Assets

Your business is likely juggling a lot of assets. At the very least, you plan on owning assets someday, but you may not know how to manage them. An accountant can help you manage your assets, such as intellectual property and investments, to ensure you get the best return.

7. Handle Legal Matters

The legal landscape is often difficult to navigate for new business owners. A lot can go wrong quickly, which could lead to losses. An accountant can help you understand legal requirements such as filing for company taxes, ensuring proper compliance, and protecting your assets.

8. Help File For Bankruptcy

Isn’t bankruptcy a sign of failure? Not necessarily. Companies like Marvel, Six Flags, and Texaco all filed for bankruptcy but ended up becoming successful companies. Sometimes, bankruptcy can give your business a second chance, and an accountant can help with that.

9. Make Professional Connections

One often overlooked benefit of hiring an accountant is the networking potential. An accountant can introduce you to financial advisors, attorneys, and other professionals who can help you manage your business. And if you trust your accountant, you can typically trust their referrals.

10. Create Analysis

With the introduction of technology in the financial world, data is becoming increasingly important. An accountant can help you analyze your financial data and create plans to improve your business’s bottom line. They can provide advice on reducing costs and maximizing profits.