When you run a small business, you have a lot on your plate to take care of. Though it can be tempting, your company should hire others to help with some of the important aspects of running your business. When it comes to your financials and tax preparation let a professional CPA help you out. There are many reasons you should hire a certified personal accountant to take care of your company’s accounting and financial preparations.
Why A CPA Over An Accountant?
Even though both are accountants, a CPA in Utah is an accountant who has passed the state’s licensing tests. CPAs are accountants with additional expertise and credentials. Though many small businesses can get away with using a competent accountant, some businesses would be better off hiring the services of a CPA instead. Below are some benefits a small business accountant can offer a business.
Licensing
CPAs are licensed by the state they work in and had to have passed rigorous exams to get their degrees. As part of their licensing requirements, they have to stay up-to-date with current tax laws and regulations. This means they have to acquire continuous education to maintain their licensure. For a basic small business accountant, they do not have to meet these same requirements. Businesses can put their trust in a CPA to take care of their taxes and financials properly.
Taxes
More and more CPAs are starting to specialize in small business taxes. Many of the annual examinations CPAs are required to take to keep their licensure involve the current tax codes. This means your CPA will be up-to-date on all the new rules the IRS roles out.
Financial Analysis
There are many types of professionals who can handle small businesses’ financial duties. For example, bookkeepers can record your business expenses and income. They can also review your financial information to record profit and loss statements and balance sheets. However, if you require a more comprehensive and detailed financial analysis for your business, a competent CPA will be better prepared to offer you advice on your finances and tax matters.
Audit Support
Only a CPA will be able to represent your company before the IRS. A small business accountant who is not certified will not be able to. This reason alone is a critical reason to hire the services of a CPA. If your business ends up being audited, you can rely on the expertise of a CPA to competently represent you when it counts.
Many owners of small businesses find themselves reluctant to hire a CPA because they think it will be too expensive. Though they cost more than hiring a bookkeeper, you will gain more benefits using a CPA. Some business owners find it best to hire the help of both. A bookkeeper can keep up with the daily financial duties related to income and expenses for the business. The CPA will help you prepare and file your taxes during tax time and represent you if you need to submit to an IRS audit.