Do I Need a CPA for My Small Business, or Can I Keep Guessing?
Wondering if you really need a CPA for your small business, or if your spreadsheet habits are enough? This brutally honest guide breaks it down without the fluff.
Published under The Accounting Hat on HatStacked.com
You’ve got a business idea, a bank account, and a receipt drawer that’s more of a receipt mountain. Now you're wondering: do I really need to hire a CPA, or can I keep winging it with spreadsheets, Google, and the occasional panic attack?
First, What Even Is a CPA?
CPA stands for Certified Public Accountant, not “Certified Paper Avoider” as some of us have hoped. A CPA is a licensed accounting professional who has passed a gnarly exam and met state-specific education and experience requirements.
Translation? They know tax law better than your uncle Bob who “did his own taxes once” and thinks he’s an expert.
So... Do You Need One?
Short answer: Maybe.
Longer answer: It depends on where you’re at in your business, how complex your finances are, and how much sleep you enjoy getting.
Let’s break it down.
You Probably Don’t Need a CPA If:
- You’re a brand new sole proprietor or single-member LLC
- You have minimal expenses and no employees
- You’re using simple accounting tools like Wave or QuickBooks Self-Employed
- You love spreadsheets and spend weekends reading tax blogs for fun (you maniac)
In the early days, you can probably handle basic bookkeeping and tax filing yourself, especially with software that holds your hand through it.
But there’s a line. And when you cross it, a CPA starts to look less like a luxury and more like business survival gear.
You Probably Do Need a CPA If:
1. You Have Employees (or Plan to Soon)
Payroll is a magical world of tax withholdings, benefits, unemployment filings, and other words that induce headaches. A CPA can help you set things up right the first time, so you don’t learn about penalties the hard way.
2. Your Business Is Making Real Money
Making real money is great. Owing real taxes because of it? Less great.
A CPA can help you reduce your tax burden legally, which is just a fancy way of saying “they save you money you didn’t know you were about to light on fire.”
3. You Want to Avoid an IRS Audit
Look, if you like living dangerously, skip this section. But if you're allergic to audits, CPAs know how to file clean, compliant returns that won’t trigger red flags.
4. You're Applying for a Loan or Looking for Investors
Banks and investors don’t want good intentions, they want legit financials. A CPA can help prepare and review financial statements that actually make sense (and don’t look like they were copied from a Monopoly game).
5. You Need Tax Strategy, Not Just Tax Filing
Software like TurboTax can file your taxes.
A CPA can plan ahead so you owe less in the first place.
One completes a task, the other creates a strategy.
Related: What’s the Difference Between a CPA and a Bookkeeper?
| Role | What They Do |
|---|---|
| Bookkeeper | Tracks daily transactions, reconciles books, prepares reports |
| CPA | Offers tax strategy, files returns, audits, helps with compliance |
Think of it this way: A bookkeeper builds the puzzle. A CPA makes sure the puzzle actually fits IRS standards and doesn’t cost you extra.
You might need both... but they serve different purposes.
How Much Does a CPA Cost?
Pricing varies wildly, but here’s a rough idea:
- Basic annual tax prep: $400–$1,200
- Ongoing services: $100–$300/hour or flat monthly rates
- Advisory/planning: Sometimes bundled, sometimes à la carte
Yes, it’s a cost. But done right, it’s one that can pay for itself by keeping you compliant and uncovering savings.
Can You Get By Without One?
Absolutely. Plenty of small businesses run without a CPA, especially in the early stages.
But “getting by” isn’t the same as growing wisely, protecting yourself legally, or maximizing profits.
If you’re guessing on taxes, improvising financials, or losing sleep over what you forgot to file, it’s probably time.
What to Look For in a CPA
- Small business experience: Ask if they’ve worked with businesses like yours. A CPA who specializes in giant hedge funds probably isn’t the best fit for your candle-making empire.
- Industry knowledge: Retail, ecommerce, services: they all have quirks.
- Tech-savvy: Can they work with your tools (QuickBooks, Xero, etc.)?
- Communication: Do they answer emails like a human? Or vanish until tax season?
Start with a free consultation. Ask questions. Make sure you vibe. You’re hiring a teammate, not just a calculator with a pulse.
Bottom Line: If You're Wondering If You Need a CPA… You Might
You’re not a failure if you don’t have one yet. But if your business is growing, your finances are messy, or you’re tired of pretending you know what “Section 179” means, a CPA is one of the smartest hires you’ll ever make.
Just maybe… not the most fun one. But smart? Definitely.
