These days, many business owners are able to be their own bookkeepers due to the “friendliness” of modern accounting software. This is oftentimes both good and bad.
The good is that it allows them to utilize additional components of the software for accounts receivable and payable, payroll processing, inventory management, and managing their bank account along with achieving greater efficiencies in the administration of their business.
The bad is that it removes the oversight and the relationship that typically comes with traditional accounting services provided by CPAs. This oversight involves compliance with laws and regulations regarding sales and use taxes, payroll taxes, income taxes, and labor regulations. It also involves financial analysis and monitoring net income for tax planning purposes. But more than anything else, it involves having a trusted professional business advisor that the client can go to when they have questions or need advice.
The last item is perhaps the most overlooked. The base of skills, knowledge and experience brought to the table by a seasoned CPA is not known to the typical small business owner. Formal training, additional degree requirements, licensing, continuing education, ethics requirements, and years of business experience make the difference in what a small business owner is either receiving or missing out on.
For all of the benefits of accounting software programs, they do not replace a professional nor make one into a professional. Ideally, the small business owner will take advantage of both.
If you have any questions on how you can benefit from a CPA, please call our office to set up a free consultation.