In part one of this series (A Certified Public Accountant in Reno Reminds Business Owners to Seek Help), the signals that should drive small business owners to seek financial advice from a CPA in Reno were discussed. These include spending too much time on the accounting side of the business, making mistakes that will lead to an audit, declining assets draining resources, stagnating revenue and missing productivity. However, don’t despair because a certified public accountant can usually resolve each of these situations easily.
Shifting Focus
The first thing a CPA in Reno can do for business owners is help them put the emphasis back on their passions. It is frequently said that if you want to be successful, do what you love. The problem is that most owners don’t love doing payroll, accounting, or tax preparations. The certified public accountant can take care of all of that. For someone like a landscaper, this allows the owner to put their focus back on their business.
The Dreaded Audit
As long as a certified public accountant is consulted before the IRS targets the business for an audit, the CPA can often avoid them completely. That is because they can avoid those red flags like little or no sales with high expenses. Something like that will catch the attention of the IRS every time. A CPA in Reno can also help avoid late filings and all of the late fees associated with them. Plus, if an audit is called, the accountant will be invaluable during the process.
Declining Assets
Business owners also need the financial advice of a CPA for things like declining assets. These often drain the resources of a company, but that doesn’t need to be the case. Certified public accountants can carefully analyze all of the assets. By doing so they can track each asset and how much it declines. They can then plug this info into a formula and take the depreciation off as a tax-deductible expense over the lifetime of the assets. This can be a substantial savings.
Stagnant Revenues
Stagnant revenues can also be an area that a CPA in Reno can provide valuable advice. Accountants can help the owner create a system so that revenues and expenses can be tracked. Using this system and analysis gleaned from tax returns, they can identify trends and create reports that the owners can use to guide future decisions. They are also able to help the owner understand the reports so that the most can be made from the information.
Lack of Employee Productivity
While employee productivity may not seem like an area where a certified public account can provide financial advice, they can. Think of the reports that are generated through payroll and the tale those reports can tell. Tax returns and payroll can yield a wealth of information including comparing hours worked with the amount of sales. In addition, an accountant might be able to suggest jobs that could be outsourced.
So if any of these situations apply to your small business, do not worry. A CPA’s services can help free up your time so that you are able to return to your passion. He or she can also help prevent an audit or provide expert backup in the event of an audit. The accountant can also carefully analyze reports on assets, revenue, and productivity to provide the business owner with a complete picture of the business. Plus, the accountant in Reno is there to help the owner understand just how those reports can guide the business.
Reno’s Best CPA,
Tim Nelson