Pay Now, Save Later: How Hiring a CPA Can Save You Money in the Long Run

It may be true that the best things in life are free, but unfortunately, running a business isn’t. If you’ve recently set up shop, you know this all too well.

Now, on top of all that money you spent on marketing, creating a website, renting a storefront, and buying equipment and supplies, you’re being told you have to pay for a CPA (certified public accountant) to handle your bookkeeping and/or taxes.

You may be tempted to skip this expense and do it all yourself—but that would be a mistake. Here’s why.

Two words: IRS audit

Taxes are complicated, especially for business owners. Unless you’re a tax expert yourself, you’re probably going to miss something, mark something down wrong, or skip an important step.

Unfortunately, if you do get something wrong on your taxes, you could end up getting audited by the IRS, leading to a penalty of several thousand dollars, on top of all the stress that comes with being audited.

According to the IRS, the average cost of an audit is an additional $6000 to $22,000 on top of taxes already paid, not to mention 20% in penalties. We guarantee that hiring a CPA is not going to be that expensive.

In the end, it comes down to this: would you rather shell out a few hundred for a CPA now? Or give several thousand to the IRS later on?

More ways to save

Many businesses choose to hire a CPA during tax season, but that’s not the only time a CPA can come in handy. Working with an accountant throughout the year can help you better track income and expenses, giving you a clearer picture of where you stand financially, and helping you make better, cost-saving decisions.

Many CPAs have financial expertise that can come in handy as you set goals and targets. They may be able to advise you on ways to cut costs and increase your bottom line.

So while paying for a CPA may mean a larger expense upfront, it’s actually one of the most efficient ways to save money—and ensure the success of your business—in the long run.

Need help finding an affordable CPA? Use TaxGlobal to connect with the perfect CPA for your needs.