Think You Need a CPA? Most Small Businesses Don’t–Here’s Why

The Kelce Brothers recently had Freddie Freeman on their podcast, and the conversation took a hilarious turn when they asked the Dodgers’ star what he’d do if he weren’t a baseball player. 

His answer? He’d be a CPA. That’s right—a Certified Public Accountant.

The Kelces cracked up. “Oh, so you’re gonna do taxes? 

This reaction highlights a common misconception about CPAs—and it’s one that small business owners often share.

But there’s more to being a CPA—or even an accountant—than taxes. Small business owners frequently ask, “Do I need a CPA for my business?” The answer isn’t as straightforward as it seems, and it often depends on your specific needs.

What Is a CPA, Anyway?

A CPA, or Certified Public Accountant, is a financial expert who has passed rigorous testing to earn their certification. However, the scope of their work goes far beyond tax preparation. CPAs can specialize in areas such as:

• Auditing: Ensuring your books are accurate and compliant.
• Forensic Accounting: Investigating financial discrepancies or fraud.
• Financial Planning: Helping individuals and businesses manage wealth.
• Tax Strategy: Developing plans to legally minimize tax liability.

Becoming a CPA requires passing a four-part exam, with only a small portion covering tax. This means not all CPAs are tax experts—and being a CPA doesn’t automatically make someone good at bookkeeping, accounting, or payroll.

What Small Businesses Really Need

Do you need a CPA for your small business? The answer is... maybe not.

Rarely does a small business need just one type of financial professional. The type of financial expertise you need depends on the current challenges you’re facing. For many small businesses, the answer isn’t one professional—it’s a combination of roles. At a minimum, you’ll want:

A Solid Bookkeeper

This is the person who keeps your financial records organized and accurate. They’re the foundation of your accounting function. Without a strong bookkeeper, everything else falls apart.

The Right Technology

Nobody has time to manually track expenses and invoices. The right tools can automate your back-office processes, freeing you up to focus on growing your business.

Tax Planning (Not Just Filing)

You don’t just want someone who files taxes—you want an expert who helps you legally minimize what you owe. This could be a CPA, an enrolled agent, or a specialized tax advisor.

Strategic Guidance

Whether it’s figuring out how to structure your business, making big financial decisions, or getting cash out of the business efficiently, you need someone who looks at the big picture.

Should You Hire a CPA?

The answer depends on your business’s complexity and needs. Many small businesses can thrive with a combination of accountants and specialized advisors. For example:

• Bookkeepers keep day-to-day records in order.
• Accountants (who may or may not be CPAs) provide financial insights and guidance.
• Payroll and HR Specialists handle staff-related processes.
• Tax Advisors focus on ensuring compliance and optimizing deductions.

For example, if you’re a small business owner who struggles to keep up with invoicing and bills, you likely need a bookkeeper first. If you’re trying to understand why your business isn’t as profitable as you’d like, an accountant can help. And if tax season gives you nightmares, a tax professional (CPA or EA) is who you want in your corner.

If your business faces more intricate financial challenges—like undergoing audits, handling complex tax scenarios, or needing forensic accounting—a CPA or a firm offering comprehensive services may be the right choice. 

Finding the Right Fit

Choosing the right financial partner is crucial. Look for firms that specialize in serving businesses like yours, with team members skilled in various financial disciplines. The best fit will be a team that takes a holistic approach to your accounting and back-office needs, ensuring your business is set up for long-term success.

Think of it like baseball: a good team isn’t just about having a star slugger—it’s about having the right players for every position.

At Patrick Accounting, we specialize in helping small business owners simplify their back-office processes, pay the least amount legally possible in taxes, and make smarter financial decisions. But we’re not the right fit for everyone, and that’s okay.

Are You Getting the Financial Support Your Business Deserves?

Not every small business needs a CPA, but every small business needs a sound financial system. Start by assessing your needs: Do you have reliable bookkeeping? Are your back-office processes streamlined? Are you making strategic financial decisions with the help of an advisor?

Once you’ve identified your gaps, you can decide whether a CPA or another financial professional is the best choice for your business. And remember, it’s not just about taxes.

Without a strong team handling your bookkeeping, taxes, and back office, you could be leaving money on the table or wasting time on tasks that pull you away from growing your business.

Wondering what that might be costing you? Take a look at The Cost of Not Having a Small Business Accountant.