When you’re a small business owner, you probably enjoy being in an environment where you get to do a little bit of everything. The only issue is that the more tasks you take on, the fewer of them will be completed successfully. When it comes to accounting, it’s one of the most critical areas to keep your business profitable. That’s why working with a CPA firm in Denver is so important. Below are a few of the situations where an accountant can make your life much easier.
Your Budget is Falling Short
Based on information from the Bureau of Labor Statistics, nearly half of new businesses fail in the first five years after opening. There are all sorts of reasons this can occur, but one of the most common is due to not meeting budget goals. When you have a CPA firm from Denver to help with you, a professional can find errors, make changes, and analyze your budget to keep you on target for meeting your goals.
Audits Are Required by Your Business Structure
Not every small business needs to conduct audits, but if you don’t have a relationship with a CPA firm in Denver, you may not realize you do until too late. Publicly owned businesses have to comply with many regulations, as do private companies that are in the process of preparing for an initial public offering. Even if that isn’t the case for you, every business needs to meet local generally accepted accounting principles, which an accountant can help with.
A Financial Statement is Required by a Lender
The Small Business Administration shows that over $6 billion was borrowed by small businesses last year. As a small business owner, you will likely need additional funding at some point. It might be for purchasing land, making an expansion, buying new equipment, or creating an emergency fund. Before you start talking with a lender, having a CPA firm in Denver create a financial statement will help jump-start the process to get you approved.
Your Business is Just Starting Up
When you’re starting a business, there are lots of things to think about. These include a business plan, a business structure, bank accounts, location, regulations, and financing. While it might seem okay to wait on hiring an Accountant in Denver, having one can dictate your success. This professional will help you analyze your business plan, choose the right structure, and make the right financial decisions to make your startup go off without a hitch.
Small Business Has Employees
Young businesses often feel as if they don’t have enough work to worry about a CPA firm in Denver at first. However, accountants have specialized information that helps your money work in your favor, even if you don’t employ a huge workforce. Accountants can oversee your payment and payroll processes, create appropriate timelines for sending 1099 and W2 forms, and ensure that your independent contractors and employees are appropriately classified.