Hiring · 5 min read
CPA for Entrepreneurs: When Should You Hire One?
Entrepreneurs often start by handling finances themselves. But as revenue, expenses, taxes, employees, and investors become more complex, a CPA can become an important advisor.
What does a CPA do for entrepreneurs?
A CPA can help entrepreneurs with:
- Business tax planning
- Entity selection
- Tax return preparation
- Bookkeeping review
- Payroll tax guidance
- Sales tax issues
- Financial statements
- Owner compensation planning
- Estimated tax payments
- Business deductions
- IRS notice support
When should you hire a CPA?
You should consider hiring a CPA when:
- You are starting a business
- You need help choosing an LLC, S corporation, or corporation structure
- You have employees or contractors
- You are making consistent revenue
- You are behind on taxes
- You received an IRS notice
- You need tax planning before year-end
- You are raising capital
- You are buying or selling a business
- You need financial statements for a lender
CPA vs bookkeeper
A bookkeeper records transactions. A CPA provides tax, compliance, and advisory guidance. Many entrepreneurs need both: a bookkeeper for monthly records and a CPA for tax planning and filings.
