Not every business owner is financially savvy, and the accounting industry is proof of it. New and old business owners alike employ CPA’s and accounting firms to do their books, but also to provide necessary input into the overall financial strategy of their business. However, for many business owners, it is difficult to know when a CPA’s skills are needed over other kinds of financial professionals.
It is important then to define what a businesses needs are before seeking aid from an accountant or a CPA.
If an accountant is fulfilling an advising role, their job is to challenge financial decisions and overall strategy. Business owners in need of an adviser would do well to employ a CPA in this particular position because of the focused training a CPA receives related to long term financial planning. Their job is to know how the market overall will impact finances and be able to react and advise appropriately.
An employer looking for a more administrative role would not necessarily need to employ a CPA. Administrative tasks involve executing smaller parts of a larger strategic goal. Bookkeeping, tax payments, and payroll processing are all tasks that a CPA’s experience is not necessary to accomplish.
However, a CPA’s financial experience more than qualifies them to fulfill an administrative role, and would also equip them to be able to think strategically about how that role is executed. Engaging a CPA in both an administrative and advisory role could pay off in the long run for a savvy business owner.
In today’s ever evolving financial world, it is critical for businesses to employ every tip and trick they can to succeed, and employing a CPA with the experience necessary to think broadly about financial decisions could make the difference between success and failure.