Questions & Answers
Is your business surviving check to check?
We fix this. No more surviving check to check. No more wondering how you're going to pay your bills. Using the Profit First cash management system will put more money in your pocket.
Does your Income Statement have a “net profit” at the end of the year, yet there is no extra cash in your pocket?
We fix this.
Are you tired of the old school “numbers in, numbers out, not pay me” accountants and financial experts who don’t take a single effective action in fattening your wallet?
We fix this too!
Are you already enjoying financial success?
Discover how to double, triple, or even quadruple your profits.
Want to discover your path to profitability?
Take your profit first.
Should I hire an accountant?
Many business owners wonder if hiring a professional to handle their accounting is the right choice for them. Processes like applying for loans or filing for taxes become less daunting with an expert on your side.
Some hire an outside accountant on retainer, while others decide to employ an in-house accountant full time. The choice depends on your business’s needs and resources. If you can’t afford to add an accountant to your payroll but need insight during tax season, you have the option to hire a short-term contractor.
How do I find my break-even point?
You’ve reached your break-even point when your sales cover your expenses. To calculate it, use these steps:
Step 1: Factor unit price (price per unit) minus variable costs (costs dependent on sales volume).
Step 2: Divide fixed costs (costs independent of sales volume) by the amount found in step 1.
Step 3: Result is your break-even point (in units sold).
This amount is unique to every business. Once you’ve reached your break-even point, you will know your business is financially viable.
What does CPA stand for?
The term CPA stands for Certified Public Accountant. Professionals use the CPA designation to advance in their careers and to eventually manage a business.
What does a CPA do?
A CPA provides audit, tax, accounting, bookkeeping, and consulting services. Often, a CPA will work in an accounting or CPA firm.
Auditing: Auditors perform test work on the accounting records in order to issue an audit option on the financial statements. Auditors spend a large amount of time at the client’s office, warehouse, and other facilities. (Curtis Accounting Solutions does not offer attestation or audit services).
Tax: Public accounting firms provide tax planning and preparation services for corporations, non-profits, and individuals. Tax accountants spend most of their time in the office and work a large number of hours during tax season. Tax work is heavily technical.
Accounting & Bookkeeping: Accountants and bookkeepers work with clients to record financial transactions. They perform account reconciliation, analytical procedures, input data, create internal management reports.
Consulting: Consultants help corporations solve a number of problems: cash management, long-term planning, and operational issues. These CPAs spend the most time traveling, and their work is focused on business management and less on accounting.
Most public accountants specialize in a particular industry. The benefit of this is that specialization makes the CPA an expert.
Who needs a CPA?
As a small business owner, it can be difficult to gauge when exactly is the right time to outsource responsibilities you may try and handle on your own. This is especially true in the case of a CPA, especially if you've just started your business or if your company has grown beyond a specific size.
While you can certainly take care of the day-to-day accounting yourself – especially if you have good accounting software – or hire a bookkeeper, there are instances when the expertise of a CPA can help you make sound business decisions, avoid costly mistakes and save you time.
When should you hire an accountant, a bookkeeper, a CPA?
1. Before you start your business
When you're launching a business and money is tight, the idea of paying hundreds of dollars for a few hours with a CPA may seem extravagant. However, like many other startup costs, it's an investment (and it's a deductible expense).
A CPA can help you set up your business correctly so you can avoid mistakes that could cost you much more to fix. A CPA can assist you with critical decisions as you get your business up and running. You might not need help with all of these decisions, but if you do, it's useful to know who can give you professional advice.
2. At tax time
CPAs can prepare tax documents, file tax returns, and provide tax planning advice to help you strategize how you can minimize your tax liability for next year.
Business taxes are very different from personal taxes; even if you've always done your taxes yourself, you might want to hire a CPA, especially if your tax situation is complex. For instance, if you have employees, or if you sell products to customers in multiple states or countries, having a CPA handle your taxes can save you time and ensure they're done correctly.
3. Special circumstances
As you run your business, there may be specific instances when you need a CPA's expertise. If you're thinking about taking out a small business loan. When events in your personal life have the potential to affect your business finances or structure.
When you're facing significant structural or operational changes to your business, such as if you're considering buying a business, merging with another business, planning to sell or close your business, or deciding to take on a new business partner or dissolve a business partnership, you should consult a CPA about the tax implications for your business and for yourself as the business owner.
4. When you feel like it is over your head or you're too busy
The bottom line is that as soon as you feel like bookkeeping and money are getting to be more than you can handle then it is the time to get assistance. You have enough on your plate already, don't make the mistake of thinking you have to do it all.