” or type “small-business CPA” into Google, searching online is a great place to start looking for the right CPA. In both cases, you’re likely to get a list of CPAs https://www.bookstime.com/articles/accounting-automation in your local area. Results are typically sorted by zip code, so if you live in a small town you may need to adjust your search radius to see more possible CPAs.

Many CPAs are also Enrolled Agents, which means if you get into trouble with the IRS, they can represent you at hearings and speak for your business. Getting audited by the IRS can feel like the Spanish Inquisition, so having someone in your corner is definitely comforting. We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Zeni: The Outsourced CPA Service Designed For Startups

They should have experience managing the financial aspects of early-stage businesses, such as cash flow management, fundraising, tax planning, and compliance. Additionally, they should be well-versed in the regulatory requirements for your specific business type and have a strong understanding of industry trends. Nearly every U.S. business will need the services of a certified public accountant at some point. Similar to understanding startup cpa the start-up costs for your CPA practice, projecting your revenue streams is equally important for any successful startup. Your profit depends on a variety of factors, including the services you offer, competition, size of client base, pricing, and ability to manage your expenses effectively. Thomson Reuters (4) reports the average CPA firm profitability, as measured by income per partner (IPP), was $521,000 in 2020.

• The directory also includes people who have completed the agency’s Annual Filing Season Program, a series of voluntary continuing education classes covering federal tax law and ethics.
• If you’re thinking of potentially choosing a new accountant, here are a few things to consider.
• If your CPA is slow to respond, or you find yourself continuously reaching out to get an answer to a question, then you should move on.
• Startups must carefully consider the fee structure and transparency while selecting a CPA firm.
• There are several technologies CPAs should be familiar with, including cloud-based systems, specialized accounting software, and data visualization software such as Tableau.

A CPA firm with expertise in your industry can provide valuable insights, help avoid common pitfalls, and play a crucial role in your startup’s growth. Selecting a CPA with expertise in these key areas will not only ensure accuracy and compliance but also provide valuable guidance for strategic decision-making and long-term financial planning. For tax planning purposes, your CPA should have extensive knowledge of R&D tax credits and startup tax incentives.