Do You Really Need a CPA for Your Small Business Finances?

If you run a small business, you’ve probably asked yourself: Do I need a CPA to handle my finances? It’s a common question, and one that I think deserves a little clarity. Let’s start with the basics.

What is a CPA, and Do You Need One?

CPA stands for Certified Public Accountant, and while it might sound like something every business owner should have, the truth is a little more nuanced. CPAs make up only about 50% of the accountants out there. Their certification is rigorous and allows them to do things like represent businesses during audits or provide audited financial statements. In fact, they’re trained in areas like auditing, financial reporting, taxation, and regulation. But here’s the kicker: a lot of what a CPA learns and is tested on is incredibly useful for large, publicly traded companies—but not always necessary for small businesses like yours.

For example, the CPA exam covers topics such as:

1. Auditing and Attestation (AUD)
2. Business Environment and Concepts (BEC)
3. Financial Accounting and Reporting (FAR)
4. Taxation and Regulation (REG)

These are critical for companies that report to the SEC and require highly specialized financial oversight. But for small businesses that aren’t preparing for the scrutiny of public markets, much of this expertise may be excessive.

The CPA Title: Impressive, but Is It Necessary for Your Business?

Don’t get me wrong—becoming a CPA is a huge professional accomplishment. It’s hard work, it takes time, and it proves a level of expertise that’s highly valuable in certain contexts. But for many small business owners, working with a CPA might mean you’re paying for services you don’t actually need. A CPA’s hourly rate is often significantly higher than a general accountant’s, simply because of the additional certifications they hold. If your business doesn’t require audited financial statements or representation during an IRS audit, you may end up spending more than necessary.

My Journey: Why I Chose Not to Become a CPA

I’ll be honest—I considered becoming a CPA. The thought of adding that credential to my name was tempting. But when I really thought about it, I realized something important: sitting for the CPA exam would mean going back to school, taking more accounting classes, and studying for an exam that, for me, didn’t align with what I love doing.

In my heart, I’m not lit up by the idea of spending hours answering hypothetical questions. I’m not excited by digging into complex tax regulations or performing audits (although I can put together a clean and clear audit schedule with ease!).

What does light me up is working directly with small business owners, helping them solve real-world problems, and making decisions that have an immediate impact on their growth and profitability.

Instead of going the CPA route, I now focus on what I’m passionate about: moving the needle in real time and offering actionable financial advice that’s grounded in the specific needs of small businesses.

Do You Really Need a CPA?

At the end of the day, the question isn’t whether the CPAs certification is important (it absolutely is in the right context). The question is whether your business needs the capabilities that specific certification comes with. If you’re a small business owner looking for help with day-to-day finances, tax strategy, or financial strategic planning, you might be better off with a skilled accountant who understands your business, is great with the numbers, and won’t charge CPA-level rates for work that doesn’t require that certification.

So before you assume you need a CPA, think about what you really need help with. Are you preparing for an audit or filing SEC reports? Or do you need practical, everyday financial advice and support? Understanding the difference could save you time, money, and a lot of unnecessary complexity.

If you’re not sure which is right for your business, feel free to reach out—I’m happy to help you make the best choice for your needs.