Why You Need a CPA: Save Money and Protect Your Business from the IRS
“From the Mind Your Business podcast, Nicole Freeman-Kirkland reveals why you need a CPA.”
Max Fortune: Are you running your business without a solid understanding of your finances? Today’s guest, Nicole Freeman-Kirkland, is here to explain why having a CPA is critical to success and how knowing your numbers can transform your business. Whether you’re just starting out or scaling, this is an episode you won’t want to miss. Welcome, Nicole!
Nicole Freeman-Kirkland: Thank you, Max. I’m thrilled to be here and to share insights that can empower business owners to take control of their finances.
Max Fortune: Let’s kick off with the basics. For those who might not know, what exactly does a CPA do, and why should every business have one?
Nicole Freeman-Kirkland: A CPA, or Certified Public Accountant, does far more than prepare taxes. We help business owners manage their financial health by providing strategic advice, interpreting complex financial data, and ensuring compliance with regulations. But what’s really important is that we help you understand your numbers. Your financials tell a story about your business, and a CPA ensures you’re reading that story correctly.
Max Fortune: So, a CPA is like a financial coach?
Nicole Freeman-Kirkland: Exactly. We don’t just crunch numbers; we analyze them. For instance, we can identify patterns in your spending, highlight areas where you can save, and even predict future financial challenges. A CPA helps you make informed decisions that align with your business goals.
Max Fortune: Many entrepreneurs rely on bookkeeping software these days. Isn’t that enough?
Nicole Freeman-Kirkland: Bookkeeping software is an excellent tool for tracking transactions and organizing data, but it has its limits. It can’t provide context or strategy. For example, your software might flag an expense as unusual, but it can’t tell you why it’s problematic or how to address it. A CPA bridges that gap by interpreting the data and providing actionable insights.
Max Fortune: Let’s talk about common mistakes. What’s one you see entrepreneurs make time and again?
Nicole Freeman-Kirkland: One of the most common mistakes is treating financial planning as an afterthought. Many entrepreneurs focus on generating revenue and neglect areas like cash flow management, tax planning, or budgeting. This approach often leads to avoidable problems, like running out of cash or facing unexpected tax bills.
Max Fortune: Can you share an example?
Nicole Freeman-Kirkland: Of course. A client once came to me in a state of panic. They had reinvested every dollar into their business to fuel growth but didn’t set aside money for taxes. When tax season rolled around, they were hit with a significant bill they couldn’t pay. We worked together to create a tax plan, adjusted their cash flow management, and implemented a reserve fund for future obligations. It was a tough lesson, but they came out stronger and more prepared.
Max Fortune: That’s a valuable takeaway. It sounds like a CPA is a key partner for long-term success.
Nicole Freeman-Kirkland: Absolutely. A CPA isn’t just someone you call during tax season. We’re there to help you plan for the future, navigate challenges, and seize opportunities.
Max Fortune: Speaking of planning, let’s shift to scaling. How can a CPA support businesses that are looking to grow?
Nicole Freeman-Kirkland: Scaling a business introduces a lot of complexity—new employees, higher revenues, more expenses, and possibly expansion into new markets. A CPA helps you navigate these changes by ensuring your financial systems are scalable. We can advise on tax implications, help secure funding, and optimize your financial operations to handle growth efficiently.
Max Fortune: It sounds like growth isn’t just about more revenue—it’s about managing that growth effectively.
Nicole Freeman-Kirkland: That’s right. Unmanaged growth can be just as harmful as no growth at all. For example, if your sales increase dramatically but your systems aren’t equipped to handle the demand, you risk losing customers or running into cash flow issues. A CPA ensures your financial foundation is strong enough to support your growth.
Max Fortune: How about startups? Is hiring a CPA worth it for businesses that are just starting out?
Nicole Freeman-Kirkland: Definitely. Startups face unique challenges, like choosing the right business structure, securing funding, and establishing accounting systems. A CPA helps with all of these. Getting it right from the beginning sets the tone for long-term success.
Max Fortune: What advice would you give to a founder debating whether to hire a CPA or handle their finances on their own?
Nicole Freeman-Kirkland: My advice is simple: don’t go it alone. As a founder, your time is better spent growing your business. A CPA not only saves you time but also ensures you’re making the best financial decisions. It’s an investment in both your business and your peace of mind.
Max Fortune: Let’s talk about taxes. It’s a topic many entrepreneurs dread. How can a CPA help take the stress out of tax season?
Nicole Freeman-Kirkland: Taxes can be intimidating, but they don’t have to be. A CPA ensures you’re compliant with all regulations, identifies deductions you might have missed, and helps you plan ahead to minimize your tax liability. By working with a CPA year-round, tax season becomes a lot less stressful because you’re prepared.
Max Fortune: Preparation seems to be a recurring theme.
Nicole Freeman-Kirkland: It is! Preparation is key to avoiding surprises. Whether it’s taxes, cash flow, or growth strategies, having a plan in place ensures you’re ready for whatever comes your way.
Max Fortune: Before we wrap up, let’s address one last point. What’s the biggest misconception about CPAs?
Nicole Freeman-Kirkland: One misconception is that CPAs are only for large businesses. In reality, businesses of all sizes can benefit from working with a CPA. Whether you’re a solopreneur or running a large enterprise, a CPA helps you make smarter financial decisions and avoid costly mistakes.
Max Fortune: That’s a great point. Nicole, thank you for sharing your expertise. Before we go, how can our readers connect with you?
Nicole Freeman-Kirkland: Readers can connect with me through my website or follow me on LinkedIn for financial tips and updates. I’m always happy to help business owners navigate their financial journeys.
Max Fortune: Fantastic. Nicole Freeman-Kirkland, everyone—a CPA who truly understands the value of empowering businesses through financial clarity.
