Welcome to Davis CPA Solutions’ Blog.
This is my first blog post and I am excited about it. My goal with this blog is to share with you my passion for the important role that accounting plays in both small businesses as well as for individuals. My intention is for this blog to be a two way conversation, so please leave comments sharing your insights and or questions on the topics. Also if there are additional topics you would like to see discussed, let me know.
The first topic I’d like to discuss is the important role that an experienced CPA can play for small businesses and individuals. The typical small business assigns its accounting function to an in-house employee, maybe even the owner, with occasional support from an outside CPA. Such an approach can be a good beginning, but it is only a beginning. If the functions of a Controller are not performed, the company’s growth is likely to be hampered.
Time is Money
For example, one of the more frequent consequences of attempting to get by without senior management accounting input is the emergence of a cash flow problem. With proper financial forecasting systems, potential cash flow shortfalls can usually be addressed months in advance and thus avoided.
Another common problem stems from inadequate cost information. Without a thorough understanding of how it costs are generated, a company can inadvertently make commitments that result in losses.
An experienced CPA can focus on providing small businesses an affordable way to obtain more and better information about the company’s financial condition and its financial potential. They can do this by providing an array of management accounting, strategic planning, and financial solutions along with traditional bookkeeping and tax solutions. By having these services provided by a CPA the small businesses are then able to focus on what they do best in their businesses.
CPA’s do more than just prepare taxes for both small businesses and individuals. They can help you to understand finances in order to make better financial decisions.
