The small business owner tends to be very proactive with his/her business, but, sometimes, has neither the time nor the expertise, or, even, the technology, to manage the financial affairs of the business. This can create difficulties when they need a loan. They also run the risk of violating state and federal laws regarding how to categorize employees or sub-contractors, or of not knowing if they need employee insurance, etc. This can result in thousands of dollars in fines and the possible closure of their business.

An effective and economical way to avoid these problems, among others, is to hire a CPA who can advise and inform them on these issues, and also keeps up to date their financial information. This makes it much easier to submit financial statements to banks and insurance companies when needed and know the financial status of the company. Also the company will have the information necessary for the preparation of taxes and other forms necessary for the effective financial management of the company, as well as doing pro-active tax planning.

Non-profit organizations, 501 (c) 3, have their own list of state and federal requirements that must be followed to avoid being fined or possibly lose their license as a non-profit organization. One of the requirements is that they must have up to date financial statements. There are other regulations that are specific to this type of organization and it is important that they be informed of them.

For a free consultation and how I can help your business or nonprofit organization, please contact my office.