From major corporations to a person earning minimum wage, financial management plays an important role in the lives of these entities. In fact, many individuals and businesses have gone broke simply due to poor financial management in one way or another.

The challenge in financial management isn't that people don't want to do it. Quite often, people can't manage one or more aspects of their finances because they lack financial literacy. People in such a position are usually advised to hire a CPA to assist them. What exactly can a personal or small business CPA assist you with?

Tax Accounting

Payment of taxes is one of the biggest pitfalls for businesses and individuals. A single incorrect claim can haunt you or your business in the future. Tax accounting is difficult for many reasons, including the fact that tax laws can change from time to time. 

Proper tax accounting can help you to avoid owing the IRS any money. It can also ensure that you take maximum advantage of tax breaks and similar opportunities, and your certified public accountant will show you exactly how to do it.

Financial Forecasts 

Whether your business is thriving or barely staying afloat, it's important to know what's coming around the corner. A certified public accountant has the knowledge to analyze financial information and tell you whether the business is on the right track. They can help you to understand the financial impact of a potential trade war, a price increase by your suppliers, a new competitor, etc. 

Business Auditing 

The last thing you want as a business owner is to find out that someone within your company was quietly siphoning money or resources. Many individuals and small businesses have been ruined by embezzlement and rogue accounting practices. 

Hiring a certified public accountant to audit your accounts will help you to ensure that everything in your books is in order.

Debt Management

Large corporations, small businesses, and individuals can sustain a certain level of debt. In fact, not having any debt may be holding back your business or your personal growth depending on how you look at it. However, it's important to always have somebody who can tell you when the debt is unnecessary or reaching an unsustainable level. That somebody is a certified public accountant. 

Managing Multiple Investments

As an individual with multiple investments, it can be difficult to keep track of everything. With multiple income streams, it's vital to have a certified public accountant to help you manage the revenue and expenses.

For more information, contact a small business CPA near you.