How can an accountant help a new business owner?
Can an accountant help a new business owner? Remember, the issue to be addressed is “What level of professional do I need at any particular point in time?” An accountant has some advantages. Accountants are unlicensed, this translates into lesser fees. This also translates into a lesser level of professional service. Routine accounting work is appropriate for an accountant. The IRS restricts accountants’ ability to represent taxpayers. CPAs and accountants often work in tandem. Accountants will perform the accounting work to the point where a CPA can address the more complex issues. Having accountants do pre-CPA level work saves money.
You need a CPA when: the IRS wants you for any reason, your professional needs are complicated, bankers or whoever needs financial statements, and when your accountant does not understand and/or cannot explain the issues. Non-CPA prepared business reports are not considered to be financial statements and have limited third-party acceptance. Most importantly you need a CPA BEFORE the circumstances above occur. Establish a relationship with a CPA early in your business formation, or now if you are already a business, so that he can give you guidance and keep you away from the pitfalls.