Reasons Why Your Business Needs a Certified Public AccountantNovember 22, 2022
Among the employees of your team, you should have a certified public accountant. Here are reasons why your business needs a CPA.
As a small or large business owner, you need to have the right team to ensure you are tax compliant. If you are not tax compliant, you can land into serious tax problems that can cost your business huge money in form of penalties and fines. To be tax complaint, you need to have a certified public accountant by your side who can guide you. For more information, here are reasons why your business needs a CPA.
For tax planning, filing and advice
Tax planning is an important thing for your small or large business. It helps you have an estimate of what you will pay come tax season, and put your finances in order to ensure you pay your tax liabilities. With a competent CPA, you will plan your taxes and file the taxes on time. In addition, tax advice is crucial. An experienced tax expert will help you minimize your tax liabilities by giving you right advice. That way, you can minimize your tax obligations, and that can help you save some money.
Play a key role in tax and financial compliance
When filing your taxes and balancing your books, you need some expertise to avoid raising red flags. For instance, when you over-report business expenses or under-report your income when filing your taxes, the IRS may notice. This can trigger an audit which can land your firm in to a more serious and costly tax problem. But with CPAs guidance and advice, it will be hard for your business to have tax and financial problems. Also, in case of an audit, the CPA will represent you before the IRS.
Forensic accounting and bookkeeping
In today’s digital world, employees have become very smart by taking advantage of the digital space to commit fraud. However, with CPAs, checking your books regularly, it will be easy to notice irregularities. By noticing irregularities and addressing them early enough, CPAs can prevent serious fraud. In addition, CPAs are highly qualified to create, maintain, and review financial books.
Certified public accountants have vast knowledge in matters of tax, finances, financial risk management, among others areas. For that reason, you can utilize their knowledge when making important financial decisions. They can help you in budget making and offer valuable advice on complex financial matters.
What does a certified public accountant do?
CPAs act as a consultant on many matters, including accounting and taxes. In other words, a CPA is trusted financial advisor with knowledge in taxes, and other financial areas, whose main aim is to help businesses, organizations and individuals plan and reach their financial goals.
Who should get a CPA?
If you make over $200,000 per year, you should have a CPA. Top earners are more likely to be audited and that is why your books must be in order. A competent CPA will help in bookkeeping and making sure you are tax and financial compliant. That way, the auditor will not find any issue on your financial records.
How much does a good CPA cost?
Hiring a certified public accountant to prepare itemized form 1040 as well as a state tax returns can cost you around $273. While hiring one to prepare and submit form 1040 and state tax return (no itemized deductions) will cost you just $176.
Having a certified public accountant by your side is something you should think about. The CPA will help you with tax planning, and guide you on financial matters to ensure your business is tax compliant. In addition, the accountant will help you with book keeping, preventing frauds and guide you to achieve your financial objectives.