The short answer is, “All of them!” If you’re a local business and you’re thinking about hiring an accountant in Salt Lake City, you should understand that accountants are indispensable for business. Accountants help businesses maintain vital records, efficiently allocate funds and raise money. They are also vital to business tax preparation. Without a certified Utah CPA, your business could make a mistake on its taxes that could cost you a substantial sum.
What CPAs Do
CPAs are like accountants and bookkeepers in many respects. They can handle all the routine math and record keeping that other accountancy processionals do, but their certification demonstrates a higher level of expertise according to industry-wide professional standards.
Only CPAs are professionally authorized to offer public opinions on publicly distributed financial statements. Whereas most business accountants administer payroll and only retain records for tax purposes, a CPA can exhaustively document compensation, benefits and deductions while maximizing tax benefits as well.
A Utah CPA can save your business money by maximizing its employment of the various tax credits currently available. Whereas an accountant or bookkeeper primarily maintains records and administers payroll, a CPA can employ his expansive professional knowledge of taxation to substantially reduce a business’ tax burden. A CPA is authorized to handle tax-related legal matters and understands which details businesses can include with their tax documents to lighten their burden.
Who Can Benefit
As previously noted, CPAs can help small businesses with all the same routine tasks as can an accountant in Salt Lake City. However, the advanced expertise of CPAs are crucial for small businesses with:
- a large number of employees
- varied and complex assets
- myriad costs and revenue streams
- leases on equipment or commercial property
- paying down a loan
So, for simple businesses with simple needs, a CPA is not mandatory. This doesn’t change the fact that it would still be highly beneficial to hire a professional to manage your taxes and financial records. An accountant or bookkeeper will do just as well. But the larger, more successful, and more complex the business gets, the more necessary the expertise of a CPA becomes.
CPAs offer their clients many assets beyond business tax preparation. For instance, they typically support larger companies by performing a detailed analysis of their books, finding artful new ways to maximize revenues and minimize costs. They can assist with account management and budgeting, as well as choosing the best accounting period for businesses.
CPAs in Salt Lake City can simplify the messy process of payroll administration, which is useful to small as well as large businesses. Their detailed knowledge of taxation, budgeting and financial planning can guide the formation and adaptation of a business plan from startup to success. They can explain to business owners the nuances of their own books, and help them close out at the end of the year