As a small business owner, you may be torn between whether to hire a Utah CPA (Certified Public Accountant) or not, especially if your budget is limited.
Though every business can benefit from a CPA, there are circumstances when a CPA may be necessary to avoid improper tax reporting, which can land you in legal trouble, and then there are other circumstances when, though you may benefit from a Utah CPA, you may fare well without one. To gain a better understanding of CPAs, as well as how they can improve your payroll services, read on.
If you are interested in saving money using the various tax credits available to you, then a Utah CPA is the way to go.
CPAs are highly knowledgeable in the various tax credits that apply to your particular business or situation, which can help reduce the amount of tax you owe and, thereby, lower your tax bill as opposed to the typical bookkeeper or accountant whose main tasks are to keep sufficient payroll records for tax purposes and calculate employee paychecks. However, a CPA also maintains accurate documents and statements concerning employee compensation, wages, deductions, and benefits, etc., ensures payroll taxes are deposited in compliance with the IRS, and processes employee paychecks.
Because certified public accountants undergo more in-depth education and training, they also have a better understanding of which details need to be included on your taxes to help prevent legal ramifications later. In the event you are audited by the IRS, a CPA is also licensed to handle tax-related legal matters on your behalf.
Who Could Benefit From a CPA?
Utah CPAs, as well as all professional small business accountants, are experts in maintaining tax records and managing financial statements, which helps ensure you file accurate tax returns.
However, if you are a small business with many employees, you have various business assets, or you have multiple expenses and sources of revenue, then you may require more advanced accounting methods, which a Utah CPA is better prepared to handle. You may also benefit from a CPA if you are leasing equipment, you are leasing commercial property, or you are paying down a loan.
On the other hand, if your business has a single owner, it has no or just a few employees, or you have very few assets, then you’ll do fine with a small business accountant.
In other words, as your business grows, the more complex your finances will get, and the more you can benefit from the services of a certified public accountant for payroll reporting and tax preparation.
What are the Other Benefits of Hiring a CPA?
Another huge benefit to hiring a CPA is their background usually includes working with larger companies, which means they can analyze your books and help you take advantage of various ways to increase your revenue, including cutting your expenses.
Utah CPAs are also known to provide major account management services, which means they can also assist you with important planning and budgeting decisions, including which accounting period to choose to better manage your business taxes.
Overall, CPA payroll services in Salt Lake City help simplify the payroll process, which can be a valuable asset to any small business. Certified public accountants are also equipped with ample knowledge and experience in all areas of taxes, budgeting, and planning, which can be utilized throughout every stage of your business, including the startup stage, to help you realize the big picture. Therefore, you ask is a CPA necessary? Hopefully, you’ve found your answer.