No matter whether your business is big or small it always demands an expert tax and financial advisor. Even a small business owner has to deal with everyday financial matters and take necessary decisions.
Most of the entrepreneurs think that as their business is small, they can handle the finances on their own. They trust in ‘do it yourself policy’ and refrains themselves from hiring a CPA to save money. If required they keep a part-time bookkeeper to handle the accounts.
But the truth is to establish your business in today’s competitive market you need not just an accountant but a certified public accountant or CPA.
If you don’t concur with me, I have strong reasons to make you understand the need for engaging a CPA firm for your line of work.
Reasons why you should hire a CPA firm
1. Let me start with explaining the difference between an accountant and a CPA. An accountant is a financial and tax professional. He follows the general rules, for example, GAAP (Generally Accepted Accounting Principles). These rules are set by FASB (Financial Accounting Standards Board).
All accountants are not a CPA, but all CPA have a bachelor’s degree and two years involvement in accounting.
CPA stands for certified public accountant. A CPA has to pass a particular licensing exam in the state. This exam includes many specific aspects of financial and tax proficiency and is an exceedingly exhaustive and careful procedure of a few days. Also, after passing the exam a CPA practice under an established CPA as a trainee.
2. Different states have different requirements for a CPA. In the club, to maintain the state license, a CPA has to stay current with the taxation laws. Thus a CPA is pre-sorted. They are experienced in managing the funds of the company as well as in performing tax audits. They can quickly examine the business demands and very well handle complicated tasks.
3. The whole procedure of bookkeeping and accounting is made easier to interpret by a CPA. There are little or no error and deletions. Thus other tax related and financial matters are pacified.
4. In comparison to an accountant, the CPA’s are more accustomed to the tax laws as Tax Code knowledge is an essential part of the license exam for CPA’s. To keep themselves updated on Tax Code CPA’s keep on taking tax courses each year.
5. The accountants cannot represent you in front of IRS even if they have got up and signed the tax return. The IRS recognizes an accountant without CPA as unenrolled preparers. But a CPA can take care of IRF notices and can also represent you.
6. Unlike bookkeepers who perform just a routine task like recording inputs or accountants who review the data and analyse the reports, a CPA does a thorough and detailed financial analysis. Also, they give advice on tax as well as financial matters.
7. If as a small businessman you are more interested in an accurate number of the spreadsheet then you can trust a CPA firm to give you the exact numbers and help you make the decisions.
When an experienced and certified accountant is on the job, you need not worry about other small things or pay a single penny more than the tax you owe. Hiring self-managed CPA saves your time as well as money.
But before hiring your CPA firm, do check this new website https://cpacatalog.com/ that provides you the list of CPA’s in your region and better discuss with them your requirements. Also, make sure they have proficiency in entity selection. It is always better to discuss your ideas about your business and its legal structure with your CPA. Also, discuss how it is going to act in the long run.