Whether it is old age, the need for new investors, moving on to a new venture, facing financial difficulties, or any other reason that you are selling your business in Houston, stepping down from your venture is a personal and big decision to make.
Unlike most other sellers who sell their business without a professional, you are making the right decision to hire a professional accountant to handle all the finance-related issues, so you can deal with the emotional issues. But then you think, what would suit better, a simple accountant or a certified public accountant in Houston, TX?
Both a CPA and an Accountant Can Guide the Sale
The thing about both a CPA and an accountant is that both can be equally helpful in their own separate ways. But when the stakes are high, and your future depends on an accurate business valuation, picking the right professional can make or break the deal. That’s why knowing what both of them do and what specialty they serve is critical when selling your business.
Who is a CPA?
A Certified Public Accountant is a licensed professional who may offer services such as tax planning, financial consulting, and in some cases, formal valuations or audits. Accountants, in contrast, typically handle bookkeeping, tax prep, and basic financial statements.
Why Would You Need an Accountant in The Presence of a CPA?
If a CPA is a certified professional who can perform complex audits and offer strategic tax advice, then why would you need an accountant when a CPA is readily available? An accountant may not be as qualified as a CPA, but they are also professionals who know their work. An accountant can be helpful if you do not have a complex job that involves tax issues.
A few things for which an accountant is a better and cheaper choice:
Basic Bookkeeping
Basic bookkeeping is one of those tasks that, despite being complex, does not require a highly skilled accountant. An accountant is more than sufficient if your business needs someone to record daily transactions, maintain general ledgers, or handle basic accounting software like QuickBooks.
Monthly Financial Reporting
Financial reporting is a fundamental task that any skilled accountant can perform, regardless of their level of expertise. They can handle the task well for generating monthly profit/loss statements, balance sheets, or cash flow summaries that don’t require audit-level precision.
Simple Cases in Tax Return Preparation
If you’re a sole proprietor or freelancer with straightforward taxes and no complex deductions, an accountant can prepare and file your tax return at a lower cost than a CPA.
Payroll Processing
An accountant can handle routine payroll responsibilities like calculating wages, issuing paychecks, and filing payroll taxes, especially if you’re a small team.
Ongoing Expense Tracking
If you need someone to track expenses, categorize costs, and ensure receipts are logged, without requiring audit-level accuracy, an accountant fits the bill.
Why Most Sellers Choose CPAs Instead
An accountant might be helpful in some cases, but selling your business is a complex procedure and requires expert hands. For most small business owners in Houston, hiring a certified public accountant in Houston, TX, is the smarter option when selling. Here’s why:
- Formal Valuation Support: CPAs can help estimate fair market value using accepted valuation methods and collaborate with legal teams or buyers.
- Due Diligence Readiness: They understand what buyers will scrutinize.
- Tax Strategy Planning: Selling means big tax implications. A CPA can help develop a tax strategy aimed at reducing potential liability.
- Regulatory & Compliance Guidance: Especially during sales involving SBA loans or investor involvement.
An Overview of Accountant vs. CPA
In most business sales, especially those over $100K or involving partners/investors, a CPA may offer more comprehensive services in complex business sales, especially when legal, tax, or valuation issues arise.
What Does Selling a Business Involve Financially?
Selling a business is more than handing over keys and signing a check. It involves reviewing historical financials, preparing accurate profit/loss statements, analyzing tax liabilities and potential write-offs, conducting or preparing for a business valuation, and thoroughly examining the legal and tax implications of the sale. A certified public accountant in Houston, TX, is a much better choice here, since not only is it complex, but it also has tax implications.
What to Ask Before Hiring a CPA When Selling a Business
No matter how easy or complex your business’s selling procedure is, there are certain questions you should always ask a CPA. Hiring a CPA doesn’t mean you should blindly trust and not do your due diligence. Before you hire a certified public accountant in Houston, TX, for a business sale, ask them:
- Are you experienced in handling business valuations and exit strategies?
- Have you supported other small businesses through successful sales or partnerships?
- What’s your track record with IRS compliance, tax optimization, and audit readiness during exits?
- Can you help prepare due diligence reports and handle financial disclosures professionally?
Why Local Matters When Hiring a CPA or Accountant in Houston
Choosing a CPA when selling your business is always a better decision, and choosing a Houston-based CPA like Dabney Tax and Accounting Services is better than choosing an accounting firm from another state. It gives you the following benefits:
- Familiarity with local tax laws and exemptions
- Knowledge of industry-specific valuation trends in Houston
- Access to a network of legal and consulting professionals for full-scope support
Final Verdict
Selling a business is a once-in-a-lifetime event for most owners. The worst thing you can do is leave financial details up to chance or rely on someone who isn’t trained to handle high-stakes decisions. Whether you’re a small retail owner or running a service-based business, it’s often beneficial to work with a CPA who understands valuation, compliance, taxes, and deal structure to provide peace of mind during complex transitions.
