Every
business, regardless of the size, needs a tax and financial advisor. However,
your business should have a Certified Public Accountant (CPA), not only an
accountant. While an accountant may perform some of the accounting requirements,
there are specific situations wherein using the services of a certified
accountant gives you the advantage.
CPAs
are considered accountants who have passed a state licensing examination. Therefore,
all certified public accountants are accountants, but not every accountant is a
CPA.
So,
why does your small business needs a certified public accountant?
Financial Analysis
A
bookkeeper conducts routine tasks of input records. But, a CPA does more than
thorough and detailed analysis. The professional also advises on financial and
tax matters. An accountant prepares and assesses the financial reports, while a Fairview Park certified accountant is more prepared in doing his tasks. This is because he
puts his license on the line when providing tax and financial advice.
Tax Laws
While
not every certified public accountant specializes in taxes for small business,
almost all of them are quite familiar with tax laws. A large part of a
licensing exam of CPAs if mastery of the tax code. Every year, many CPAs take
tax courses to be updated on the Tax Code.
Also,
an accountant may prepare tax returns and sign them, but the accountant
designation does not give the guarantee of certification. The accountant also
lacks the skill to represent you in front of the IRS.
Licensure
A Fairview Park certified accountant obtains a licensed from a state and must be up-to-date
with tax laws to be able to keep his license in that state. Accountants are
generally not licensed. The CPA exam is an extremely thorough process,
including a lot of details regarding tax and financial expertise.
After
getting their license, CPAs must abide by continuing education requirements in
order to keep their licenses. On the other hand, accountants do not have this
requirement.
IRS Audits
Probably
the main reason to hire a CPA for your small business taxes is that he is
qualified to represent you in an audit before the IRS. A CPA can evaluate the
work and help you make decisions about business and tax.
If
you are hiring an expert do tax preparation for you, make sure the person is
eligible to represent you in an audit and to carry out claims on your behalf. A
CPA has full authority to do this job for your business. While CPAs generally
charge more, rest assured that you get what you pay for.
Working with A CPA
When
looking for a CPA firm, find one that includes an accountant and bookkeeper.
This enables you to separate the financial and tax analysis done by the Fairview Park certified accountant to the routine financial tasks.
You
may employ a bookkeeper to do monthly, quarterly, and annual financial reports.
Then, consult with a certified public accountant on a periodic basis to work on
your taxes. This also includes asking the CPA to review and sign on your tax
return that an accountant may have done before.
