What Does A Certified Accountant Westlake Do?

Most obviously, when tax season rolls around, the certified public accountant will prepare your small business taxes for you. Although it is possible to do it yourself and bookkeeping software makes that easier, business taxes can quickly become complicated, and mistakes are easy to make. For example, sometimes businesses have to work with filing taxes for multiple states, especially if their sales are through the Internet. And the interest from a short-term debt needs to be written off properly, or else you might have trouble securing a loan in the future. Figuring out which expenses are tax-deductible your car or your rent can also be tricky to do without professional help of a certified accountant Westlake.

Setting Up Your Business

If you are just starting your business, the certified public accountant can help you pick the correct legal structure, whether it is a sole proprietorship, a C-corp, an LLC, a partnership, or an S-corp. Once you have chosen one, it is difficult to change so it is vital that you pick the right one to begin with. The differences between different legal structures can be confusing, so it is best to have the advice of a professional.

They also can advise you on choosing the best health insurance policy for your employees depending on your budget and make sure that you’re complying with federal and state employee rules and regulations so that you avoid fines.

Advising Through Downturns

One advantage of hiring a certified public accountant is that they are able to take an outsider’s big-picture view of your business’s finances, helping you to make long-term decisions and evaluate risk. Small business owners frequently devote all their time to day-to-day operational issues and may not stop to get a big picture view of the larger or long-term challenges they should address. If the certified accountant Westlake is familiar with your industry, they can even work with you through recessions and economic downturns, helping you to figure out how to stay relevant.

Loan Applications

A certified public accountant can advise you on whether or not you should take out a loan, taking into account your cash flow, any associated risks and fines, and the effects that it will have on your business taxes. Say, for example, you are considering changing around the ownership percentages of your business in order to qualify for a loan. The certified accountant will be able to work with you, advising you on the specifics of changing ownership based on your company structure and referring you to a tax attorney if necessary.

Not every business needs to have an accountant. However, they can be an extremely valuable resource that will save you time, money, and energy in the long run. A certified accountant can look at your sales data, profit margins, cash flow, inventory, and payroll and determine if you need to make any budgetary adjustments. From the decisions you need to make about your company’s structure, budget, and benefits to tax time to loan application, an accountant will add expertise and protect you from paying for financial mistakes.