December 8, 2007

How CPAs Can Prove Invaluable For Small Businesses

More often than not, small businesses fail mainly due to lack of proper planning. CPAs are considered to be one of the most invaluable means of increasing the productivity of small businesses. Their expertise helps as business advice for small businesses, finding solutions to specific problems and also in developing industry expertise by assessing proper sources of information. It basically offers five services that help improve the chances for survival. It includes developing business plans and marketing plans, providing business consultation, implementing computer and management information systems, as well as planning business start-ups. These services require thorough knowledge of the business and the industries within which the operations take place. The increase in information resources offers better accessibility to a wide variety of industry expertise for CPAs and small businesses. CPAs help provide their clients with relevant advice, to help avoid problems and develop their own industry expertise by incorporating the resources of the information industry. Small businesses lack the knowledge of how to compete with their competitors. CPAs can help them understand the basic difference between merely competing and knowing how to compete effectively. Besides, they can also help them by providing the knowledge of the particular industry. There are a number of ways in which CPAs can be beneficial for small businesses. They are discussed as follows:To help understand the client industries: CPAs can help small business firms by providing them with services that enable clients to access, interpret and apply necessary information to the business. Living in the world of information technology, everyone has access to information bases via technological advances in the compilation, storage and retrieval of data. However, small firms are unable to distinguish need to know from good-to-know information. They require counseling on what information is essential for the running of their businesses and ways to make use of that information. CPAs can help provide them with relevant information, so that they can understand the industries of their clients and combine resources to enhance the productivity of small businesses. Press-clipping services: To assist with the latest developments in different industries, CPAs provide press-clipping services to small businesses. It monitors the general as well as business press across the country, clip pertinent articles and then sends them to you. It is available for a nominal fee. In case your contract with the service permits, you can also send copies to your business clients, performing an additional service and letting them know that you are familiar with their concerns. Besides this, there are many other services that offer clients with essential information and provide value added consulting. Instant information: By providing instant information to the business firms, CPAs can prove to be a great source of help for a number of small businesses. It has access to instant online information and can be accessed through the personal computer. It is supplied by information network services and is a great support for new value added consulting services. The network service providers offer reliable information, while the database publishers take responsibility for the integrity of their data.
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About the Author: Former IRS Agent offers California Estate Planning. CPA Firm Murrary and Young offers expert accounting consultation to those in and around the California Area. Visit