No one wants to be at the mercy of their accountant, stumbling through financial jargon they barely remember from years at undergrad, but with the title of CPA comes a knowledge of balance sheets and financial statements few of us will ever fully understand. Here are a few things your accountant will catch that you would have probably missed:
1. Your Accounting Software Mistakes
Everyone wants to automate their accounting systems and implement advanced technology, but even the most prestigious softwares have their issues. Instead of relying on technology and assuming there aren’t any problems, a well versed CPA will be able to find the red flags in the software outputs that you might have just accepted. Some tech-savvy accountants can even help modify the accounting software you are running to cater it to the personalized needs of your firm.
2. Separation of Personal and Business Funds
Opening a small business takes a lot of personal investment, and remembering to keep your business accounts and personal accounts separate can be difficult in the early years. Your CPA can help you keep track of your purchases by looking critically and objectively at your receipts and make the tough choices you might have trouble with. This will not only keep you legal but could save you more than you were expecting!
3. Depreciation of PPE
Who would have thought that your laptop would have an annual depreciation rate? Your CPA will see all the property, plant, and equipment items that depreciate over time and help you with the tax write off. There are a handful of items such as land, computers, and company cars that depreciate over time and your CPA can easily spot and help you handle.
4. Travel and Automobile Expenses
As a small business owner you may be traveling a lot to meet with new clients or research expansion. It’s important to remember that those business related expenses can be written off under a travel account. An expert CPA will catch those gas fill ups, company car payments, and hotel nights that you might have missed and save you money in the long run.
5. Education expenses
Trying to improve your business by educating your employees? Many small business owners forget that those expenses can be written off. A certified accountant will be able to see that your new employee refresher course or the developmental course for current employees doesn’t cost as much as you think. While there are conditions and stipulations with this tax write off, a CPA can recognize potential opportunities and help you adjust your programs to help them qualify for the write off.
