When not to hire a CPA

When not to hire a CPA

May 19th is National Accounting Day, but we like to celebrate it all month. And we will start the party by telling you when your business shouldn’t hire a CPA.


Yes, you can insert the record scratch here. Why would a CPA blog tell you when not to hire one?


Because CPAs are supposed to stand for integrity, transparency, and truth.  If you can’t trust your CPA, you can’t trust anyone.


And sometimes, that means admitting that some small businesses can save money by sticking with bookkeeping. 


But how do you know?


Every situation is different, but there are a few common denominators.


When you only need bookkeeping


Sometimes, bookkeeping works, especially in small businesses. It can even grow with your business to a degree.


For example, you may start off doing everything yourself with software, but when you spend more time on the books than the business, you can graduate to a full-charge bookkeeping service.


A full-charge bookkeeper will manage accounts payable and receivable, monitor cash flow, prepare quarterly financial statements, and perform a host of other tasks.


Of course, you can hire a CPA firm to do this, and there is a time when you should consider it.  More on that in a bit.


In the meantime, let’s look at the next sign when bookkeeping may be the best option.


When you don’t want to grow your business


Not every business owner wants to grow their business. There are plenty of reasons for that, but you probably won’t need the strategic advice and services only a CPA can offer.


Becoming a CPA is rigorous because they have to know how to perform internal audits, financial analysis, and other deep services growing businesses require.


But businesses have to pay for that expertise; if it isn’t needed, the best route is to stick with a bookkeeper.  


When you have time to do the books yourself


It’s a stretch to say any business is easy to run, but some businesses are relatively simple from a tax and finance perspective.


So, if your business only requires simple income, expenses, and tax entries, you’d probably be better off with accounting software.


At this point,  you may think you’ll never need a CPA and maybe you’re right. But if there’s one truism about business, it’s that it’s constantly changing.


With that in mind, you may want to consider at least looking over the other side of the fence to see if a CPA is necessary to help you achieve your business goals.


Here’s how to do that.


Considering the CPA transition


You don’t know what you don’t know. In business, that can lead to lost opportunities or worse.


So, if your business seems to be stagnating or you have major concerns, like audits, you can always schedule a time to talk to a CPA.


They may be able to provide services or insights you didn’t know existed, and it may mean the difference between success and failure.


The Bottom Line


It’s feasible to run a small business without a CPA. If it’s working for you now, then keep going with it.


But it’s always good to know what a CPA has to offer. It may trigger an idea that helps take your business to the next level.