Think a CPA is Just Another Expense? Your Future Buyer Disagrees

Why Your Future Buyer (and Broker) Will Thank You for Hiring a CPA Early On

Scrolling through social media the other day, we came across an all-too-common question: "Small Business Owners: Is it necessary to pay for an accountant, or is this just another expense?" The comments section was... illuminating, to say the least. Some business owners staunchly defended the DIY tax approach, while others swore by their CPAs as if they were personal finance wizards keeping their businesses afloat.

As mergers and acquisitions professionals, we can tell you firsthand: nothing scares away buyers faster than messy books or vague financial records. While it’s certainly possible to manage your own taxes if you run a very small business with no employees and limited sales, the reality is that most business owners will eventually wish they had brought in professional help much earlier.

Here’s why:

1. A Clean Start Beats a Costly Cleanup

Hiring a CPA from the beginning ensures that your financial records are clean, accurate, and in compliance with tax laws. When owners try to "fix" years of neglected or inconsistent record-keeping just before selling, it often results in more than just headaches—it raises red flags for buyers. A forensic accounting exercise to reconstruct years of missing details is expensive, time-consuming, and, worst of all, filled with financial mysteries even Sherlock Holmes couldn’t solve.

2. Buyers Like Clarity, Not Guesswork

Imagine this: a potential buyer asks a simple question about your cost of goods sold, and instead of pulling up a report, you have to dig through old invoices and rely on memory. Buyers want transparency and confidence, not uncertainty. If your financials are well-organized and professionally maintained, the due diligence process becomes smooth and efficient, making your business far more attractive.

3. Your Business is Worth More When It’s Professionally Managed

A company with a history of solid financial management simply commands a higher price. Why? Because buyers are paying for a well-oiled machine, not a fixer-upper. If your records are pristine and your tax strategy is sound, buyers see less risk—and less risk means more value.

4. CPAs and Attorneys Are Your Business's Best Friends

While we love meeting business owners when they’re ready to sell, our job is infinitely easier when you've had the right professionals by your side all along. A CPA ensures your financials are buttoned up, and an attorney helps protect your business structure and contracts. Together, these professionals help you avoid costly mistakes, minimize taxes, and ensure your business is sale-ready from day one.

5. Peace of Mind is Priceless

Running a business is stressful enough without worrying about tax season surprises or potential legal pitfalls. A great CPA does more than prepare taxes—they help you plan, optimize, and stay compliant. Having that support system in place allows you to focus on what truly matters: growing your business.

The Bottom Line

Sure, you could do your own taxes, just like you could change your own oil, cut your own hair, or perform minor surgery on yourself. But just because you can doesn’t mean you should. For most business owners, hiring a CPA early on is one of the best investments they can make. Not only will it make your life easier, but when it comes time to sell, you—and your future buyer—will be incredibly grateful for the foresight.

So, to all the business owners out there wondering if a CPA is just another expense: think of it as an investment in your future success. And when you're ready to exit, we at Trending Up Business Services will be here—hopefully not sorting through a financial mess, but instead helping you maximize the value of your well-organized, professionally managed business.