8 Dos and Don’ts When Small Business Owners Working with a CPA

As a small business owner, you may face challenges while accounting; as a result, you need a CPA in Centennial, Colorado, to manage business accounting and finances. Working with a CPA can be daunting as they are expert professionals with a great understanding of accounting. Thus, you must take care of certain do’s and don’ts. This article highlights the top 8 dos and don’ts for small business owners when working with CPAs. Let’s dive in! 

4 Do’s For Small Business Owners 

1. Be transparent  

When working with a CPA, honesty and being transparent is the key. You must share all important business information like potential challenges, business growth, income, expenses, and others so that a CPA can give you tailored advice.

2. Be knowledgeable 

A basic understanding of accounting and business is a must so that you can conduct conversations with your CPA and understand their point. 

3. Communicate actively 

Indulge in open communication with your CPA the entire time. Ensure you inform them about any business changes, the latest updates, or any concerns that you may experience. They will help in planning financial goals strategically. 

4. Seek advice  

Besides taxation and compliance, you can seek advice from your CPA on various topics, like budgeting, financial planning, business growth strategy, and forecasting. Their guidance helps you to grow your business. 

4 Don’ts For Small Business Owners

1. Assuming CPAs know everything 

Making assumptions about your CPAs and believing they know everything can be problematic. Although they are financial experts, they do not know the insights about your business and industry. Thus, you must provide them with comprehensive information. 

2. Ignoring CPAs advice 

Another big mistake you may make as a business owner is ignoring CPAs advice. At times, you may not agree with everything they say, but invest your time and understand their point of view. Since they have knowledge about taxation and finances, they provide insightful strategies only. 

3. Overlooking communication 

Not conducting communication throughout the year and appearing during the taxation season can lead to issues. You must get in touch with your CPAs regularly and update them about business activities. They will address challenges, help in determining opportunities, and help you in meeting business goals. 

4. Procrastinating documentation 

Waiting till the end to collect and gather all business documents and information is a major mistake. Avoid procrastinating documentation to maintain regular records. 

Wrapping Up!

Small business owners, when working with CPAs, must take regular advice from them to grow exponentially. 

Ricky Mulhall