When Do You Need a CPA?
According to a survey conducted by the AICPA, CPAs are considered some of the business world’s most trusted advisors. When asked how often they rely on the advice of their CPA, half of small business owners said they did so often.
You may be starting your business and are looking for ways to cut costs. Or perhaps you feel like most of your bases are covered and if there are issues, you can deal with them later. Before you decide you can’t afford a CPA, here are a few reasons that may convince you otherwise.
- What is the best use of your time?
- How much time do you spend on bookkeeping and working on taxes?
- Could your time be better spent growing your business?
Here Are a Few Facts About CPA’s
CPA’s are considered fiduciaries with a legal duty and power to act in the best interests and in behalf of their clients. They can also represent you legally in the case of an audit. This is not the case with an accountant.
CPAs are more knowledgeable in tax codes as a result of the rigorous licensing and education requirements to attain the certification of a CPA. Your CPA is eligible to represent you before the IRS if audit support is required.
Continuing education. Your CPA is required to take continuing education classes. This keeps them up to date on current tax codes and changes and other nuances in business accounting.
Is a CPA Expensive?
- Help determine the best business structure for your business, LLC, sole proprietorship, corporation, etc.
- They can look at your business plan and provide a financial analysis.
- Make sure your accounting procedures comply with government regulations and requirements as well as make sure you are taking advantage of any tax benefits or deduction.
- Oversee payroll and insure independent contractors are classified properly and not as employees by the IRS.
- Provide estimated tax payments you should make during the year and keep up with sending out the proper W2 and 1099 forms.
- A trusted business advisor. In the twenty plus years of providing accounting services, Melanie has become a trusted advisor to many of your clients. They call to ask about tax consequences of an inheritance, or how to structure the purchase of an investment property. She helps them determine how to write off farm animals and how to file if there is a divorce. Who claims the kids in a divorce? A good CPA can help you with all of this. According to CPA Practice Advisor, five of six business owners consider their accountant as a “Trusted Advisor they can turn to for a wide range of business advice.”
When looking at cutting costs and running a tight ship, be sure you aren’t penny wise and dollar foolish. The cost of having someone who can help advise you financially and help protect you from tax consequences may save you thousands.
In most cases, hiring Tax Wizards East is not as expensive as you might think. Your business receives not only support it needs to navigate complicated tax laws, you can rest assured knowing that if you do get a letter for an audit, or need financial business advice, you have an established relationship with someone familiar with your business.
Melanie Gebers built a successful practice in Las Vegas and has been helping folks navigate their bookkeeping and taxes for more than twenty years. There isn’t much she hasn’t seen or been asked. For example:
- Can you write off your dog or your cow or your horse on your taxes?
- How do you file your taxes after a divorce? The answer might surprise you.
- How much of my home can you write off for your business? Did you know the answer to this one can be a red flag for an audit?
- I want to buy a rental home. Do I need to establish an LLC? What are the tax consequences?
If you are a small to medium size business owner and are doing everything yourself, running your business, handling HR and the financials, it is a lot to keep up with. Tax Wizards East can lift this burden from you, and help provide consulting that helps you grow your bottom line.