Do I Need a CPA for My Small Business? An Honest Answer

A bank, SBA lender, or bonding company requires audited or reviewed financial statements — usually on commercial loans over roughly $1 million, or as part of a large surety bond.

You're raising outside capital and the investors require audited financials as a condition of the deal.

You have a government contract that mandates CPA-signed financial statements.

You're preparing to sell the business and the buyer's diligence team requires reviewed or audited financials.

You're a nonprofit above your state's audit threshold (in Montana, generally larger organizations).

In every one of these, the requirement is in writing. If no one is asking for audited financials in writing, you almost certainly don't need a CPA.

You just need your business tax return prepared each year. An IRS Enrolled Agent (EA) or a qualified tax preparer covers this — no CPA required.

You want proactive tax planning to reduce what you owe. Any competent tax pro can do this; EAs specialize in it.

You want monthly bookkeeping and financial reports. A professional bookkeeper or accounting firm handles this — CPA credential not required.

You got an IRS notice or are facing an audit. EAs, CPAs, and tax attorneys all have unlimited representation rights before the IRS.

You need help forming an LLC, S-corp election, or setting up payroll. Standard small business advisory work, no CPA needed.

For tax returns, tax planning, and IRS representation: an Enrolled Agent. Federally licensed, 100% tax focused, typically lower cost than a large CPA firm.

For monthly bookkeeping: a bookkeeper (or a firm like Marlow Accounting that bundles it with tax and payroll).

For payroll: a full-service payroll provider or a firm that runs payroll integrated with your bookkeeping.

For strategic finance work in a growing company: a fractional CFO — often the same firm handling your bookkeeping.

Because 'CPA' is the household-name credential, many small businesses default to hiring a big CPA firm and pay CPA rates for work that doesn't require a CPA license. There's nothing wrong with hiring a CPA — but you should know you're paying for a credential you may never use.

For a typical Montana small business, an Enrolled Agent-led firm delivers the same tax return, the same tax planning, and the same IRS representation authority, usually with more responsive service and a lower monthly fee.

If someone has demanded audited financial statements in writing, hire a CPA firm.

Otherwise, hire an Enrolled Agent-led firm (like Marlow Accounting) that combines bookkeeping, payroll, tax planning, and tax preparation under one roof.

This article is general information, not tax, legal, or accounting advice for your specific situation. Rules and thresholds change, and the right answer for your business depends on facts we don't know. Talk to a qualified professional before acting on anything you read here. Call Marlow Accounting at 406-290-1214 or schedule a free consult.