6 Benefits of Having a CPA on Retainer

May 23, 2023
6 Benefits of Having a CPA on Retainer

  CPA on retainer - Female accountant in an office working on a company's financial records.


Businesses aren’t always in a position to hire a Chief Financial Officer (CFO). Early on, it often comes down to owners, executives, and even managers to pitch in on bookkeeping, tax compliance, and more. That is a great way to start and get a grasp on the finances of a new business. But quickly, it becomes all too inefficient. This is where the importance of having a CPA on retainer comes in.


Why is it Important to Have a CPA on Retainer?


Those early days of business owners having their hands in every aspect of their growing business are exciting. Some even enjoy the work of serving as a do-it-yourself accountant alongside their other responsibilities. But even those that do, will often find that having a working relationship with a Certified Public Accountant (CPA) is much more efficient—and cost-effective—than other options.

Here are six benefits of having a CPA on retainer:

Increased Efficiency by Leaving Bookkeeping to a Professional CPA

Every working hour spent outside of one’s area of expertise is inefficient. Experienced marketers should spend their time developing new ways to promote the business—not bookkeeping. Executives should stay focused on finding new revenue streams, not tracking existing income. Employees should not become mired in accounting work, they should stay on the tasks that generate revenue.

Staying Ahead of Tax Audits

Audits are rare, especially if your business operates in good faith. But they’re inevitable, and to an extent, completely random. In fact, there’s no way to prevent them, and getting caught off guard is costly. However, businesses with a CPA on retainer are never caught flat-footed by an audit—they’re always ready to go.

Staying Ahead of Tax Reforms

State and federal tax requirements are always in flux. Sweeping changes to the tax code are rare, but smaller adjustments are constant. For example, tax inflation adjustments happen frequently. A CPA can keep businesses prepared for any upcoming changes and can help in taking advantage of all possible benefits to the fullest extent.

Accurate Revenue Projections Help Businesses Grow with Less Risk

Keeping a CPA on retainer long-term means having access to projections that moonlighting as an accountant simply cannot produce. Projecting revenue based on factors like potential growth, future expenses, as well as tax burden is a complex process. A CPA—especially one with deep knowledge of a particular business’ books—can help prepare for tomorrow, not just keep track of today.

Avoiding Internal Conflicts of Interest

CPAs provide dispassionate, third-party accounting services. In fact, every conclusion they make about the present and future financial health of a business comes from an outside perspective. Whether the news is positive, or something that requires buckling down and preparing for a rough patch, the only incentive of a CPA is to provide impartial, truthful information.

Reliable Information is Easy to Track and Provide to Clients

Having internal employees with other responsibilities handle bookkeeping collectively is rarely as reliable as the best-laid plans point towards. Mistakes are made, best practices are ignored, and sometimes the demands of the primary workflow overtake the time meant for bookkeeping.

Having a CPA on retainer avoids all of these pitfalls. With key financial information all handled consistently and objectively by a trained accountant, businesses gain easy access to complex information. Being able to pull up key documents on-demand for customers, regulators, as well as the IRS prevents the creation of time-consuming mistakes.


Let Foster Financial CPA Help You


In fact, the investment in keeping a CPA on retainer is an easy step to take given the clear benefits. As businesses grow, they increase in complexity. Specialization also becomes more important than it used to be.

That’s why Foster Financial CPA provides accurate, timely, and honest bookkeeping and accounting services. Businesses deserve the best shot at success, even as economic conditions grow ever more complex. To explore options for keeping a trusted, experienced CPA on retainer, don’t hesitate to contact us today.