The most essential aspects of any business, big or small, are record keeping and expense tracking. These are some of the reasons why you would need to hire a CPA for your company. This is a Certified Public Accountant who is not an enrolled agent or accountant.
CPAs are tax experts and their main work is to help with filing your business taxes. They also answer some important questions that can potentially save you money during taxation season. This is actually the main reason to hire one, and we shall expound on it below.
A qualified CPA is required to have passed the uniform CPA Exam plus the rigorous one that tests their understanding of tax law with all the standard accounting practices. They should also have obtained a state license as well.
Reasons to Hire a CPA
A qualified CPA must ensure that they have unlimited representation rights before the IRS in order to provide you with the following essential services.
Maximizing on Taxation and Credits
Most business are not doing everything they need to maximize on taxes for their businesses, and this is one of the main reasons why they should consider hiring a CPA. The CPA will help you maximize your credits and tax deductions in order to save you money.
A CPA firm will also be able to evaluate the current situation in your business and even recommend some of the best approaches that shall help you lower your tax liabilities that year. You will also be able to maximize savings from the main allowable deductions and take advantage of the tax credits so you can focus on growing your business.
They Help Reduce Filing Issues
The continuing requirement for taxation is for CPAs to be updated on the changing tax laws. Since tax reform continues to create new comprehensive changes, it might be hard for a business to fill out all the required files. In order to mitigate against any issues rising from the filing of your taxes, a CPA comes in quite handy.
IRS Audit Representation
This is another primary reason to have a CPA in your business. They are usually eligible to represent you before an IRS audit. The audit usually is extremely complicated and tedious as a process and taking the significant time away from your business is not necessary.
So, hiring a CPA firm generally helps to fill this responsibility. It reduces the hassles you would have to do when dealing with the IRS.
They Are Available All Year Round
When you hire a CPA for your firm, you have access to their knowledge all year round. They will not only just show up during tax season. CPAs also tend to have lots of experience with Tax Planning as well. They will provide you with strategic plans and advice, plus some insights into your financial data.
It Simply Saves You Time and Energy
Judging by the amount of work they have to do, you save yourself the headache of having to deal with it by yourself, especially tasks that have to deal with taxation. Most business people will spend nearly 70% of their time doing these mundane tasks that a CPA can handle with ease.
Additionally, even if you are able to handle the tasks by yourself, there is no guarantee that you have done the right thing. Consider important questions such as,
- Were all the credits and deductions fully utilized?
- Are you ready to defend your returns with the IRS audits?
- Have you done the right thing?
If the answers to any of these questions are No, then you should consider hiring a CPA for your business.
All businesses need to have someone who can advise them on tax and financial matters. CPAs will do more than the normal crunching of numbers for your business, especially when they are preparing your taxes.
They also provide you with financial strategies that your business can use to grow and save money. However, you must do adequate research of any CPA you consider to hire, and ensure that they have the required qualifications to do a good job for you. All the best.