CPA Services are Essential to Every Business
If you run a business and you’re aiming for success, then it’s vital that you either have a comprehensive understanding of tax and finances and the time to dedicate to these areas, or someone to advise you on them. Having a tax and financial expert on your team is one of the greatest essentials of building a business, no matter how big or small that business is.
In the very early days of establishing your business, the services of an accountant may suffice, but as the needs of your business expands, there’ll come a time when you really need to start considering bringing a certified public accountant, or CPA, on board.
If you’re debating the pros and cons of hiring a CPA, and trying to decide whether it’s the right move for your business, then take a look at these four reasons why CPA services are essential for a business to prosper:
CPA’s Understand and Stay Up to Date with Tax Laws
A license is one of the biggest differences between a CPA and an accountant. In order to become a CPA, an individual must pass the rigorous CPA examination. After obtaining a license, CPAs must then maintain it, with requirements that differ from state to state. In order to renew a CPA license in Illinois, CPAs have to complete 120 hours of continuing professional education – which includes 4 hours of ethics – every three years.
The extensive training and renewal requirements mean that CPAs know what they’re doing! The knowledge of a CPA, particularly in relation to current tax law and obligations, is an important asset for any business.
CPAs can give you professional tax advice and are certified to take on many responsibilities, including completing tax audits and signing tax returns. A CPA can also advise you on tax implications when buying, selling, or merging a business.
Tax law is complicated, and for new business owners, can be a source of significant stress and worry. Enlisting the help of CPA services will reduce the stress of tax returns and ensure that you always have expert advice available when you need it.
CPA Services Will Help Your Business to Grow and Succeed
CPAs provide a number of essential services that every business requires. While some of these services don’t necessarily require a CPA, CPAs can help you to minimize risks and maximize rewards.
As we’ve already covered, CPA’s are experts on current tax law. It’s very easy to make mistakes with business taxes, but thankfully, a CPA can relieve you of the stress by preparing your business taxes for you. A CPA can help you with tax planning and tax preparation, advise you on tax implications and the best tax strategies, and help you with bookkeeping software.
Tax services only scratch the surface of what a CPA can do for your business. CPAs can advise you on many areas of finance to help your business succeed, with services that include, but are not limited to:
· Start-Up Advice – The services of a CPA are invaluable when setting up a new business. They’ll help you to choose the correct structure and advise you on regulations, rules, policies, and software.
· Financial Planning – CPAs can help you with many areas of financial planning, from estate planning to business transfers
· Loan Applications – A CPA can advise you on the impact a loan will have on your business, help you determine whether it’s the right choice to meet your goals, and assist you during the application process.
· Financial Analysis – CPAs can perform a very detailed financial analysis to give you a comprehensive view of your business’s finances.
· Financial Statements – A CPA is able to prepare a wide variety of financial statements, such as reviews, audits, and compilation reports.
When obligations, complications, or queries arise regarding your business’s finances, CPA services are one of the greatest assets you could have.
CPA’s Can Represent You and Your Business
Another service that CPAs are able to provide – which is vital to any business – is IRS audit representation. Receiving notification of an IRS audit can be a highly stressful experience for businesses, but CPA services can make a notification less worrying and more manageable.
A CPA will help you to fully prepare for an IRS audit: they’ll understand what’s required and will guide you through the whole audit process. CPA representation will reduce the chances of your business receiving penalties and make sure that the audit is resolved quickly and correctly.
If you have no previous experience with IRS audits, it can be extremely beneficial to have the option of being represented by the CPA service that prepared your tax returns.
CPA Services Will Save You Time and Money
Time and money are two of the most important things when growing a business, and a CPA will help you to save both! CPA services can be more cost-effective than handling your business’s taxes and finances yourself – it’s likely to take much longer for you to stay on top of your finances than a CPA, reducing the hours you need to put in and freeing up time to focus on other important matters.
CPAs can also help to reduce tax liabilities by giving you expert advice on how to run a tax-efficient business. When you use a CPA service, you’ll get advice on where you could be saving money that you may never have considered.
By taking care of time-consuming tasks, saving you money, and reducing the stress of managing finances, a CPA will quickly become an indispensable part of your business.
Enhancing your business with the experience, knowledge, and skills of a professional certified public accountant can only mean exceptional things for the future of your company. While you could continue to run your business without a CPA on hand, you’ll be losing out on a wealth of advice and support, that ultimately, is there to protect you and your business from financial pitfalls, accidents, and disasters.