Whether you’re a small business owner or just filing your taxes for the first time, hiring a Certified Public Accountant can help you organize and keep your finances in check. CPAs do much more than prepare tax returns — they also offer year-round tax planning. That means they’re constantly analyzing your finances to find ways to lower your taxes while growing your business.
They Are Experienced
A CPA will have a lot of experience with your specific tax situation. They’ll be able to answer your questions, advise you on how to save money, reduce your taxes, and represent your interests if you face an IRS audit.
They can also help you select the proper business structure, which is crucial because it can affect your taxes, liabilities and reporting requirements. If you choose the wrong entity type, it can be expensive and time-consuming to change later on. Hiring a CPA from a reputable organization like Eide Bailly will ensure you do the right thing for your business and comply with all applicable laws, whether a sole proprietor or a large corporation. A CPA can also help you avoid tax traps and take advantage of deductions you might not have known so that you can maximize your savings. While they may be a bit more expensive than bookkeepers, hiring a CPA is often worth it because you can save time and stress by getting your taxes done with a professional. Plus, they’re often familiar with tax software and can automate much of the work, so you don’t have to worry about human errors affecting your tax return.
They Are Accurate
Hiring an accountant is the best way to ensure you file your taxes correctly. This can help you avoid penalties and save money on your taxes. CPAs have a lot of experience in the field and are well-educated on current tax laws, regulations and policies. They can provide accurate tax advice and represent you during IRS audits.
A CPA can also prepare formal financial statements for business purposes, including balance sheets, cash flow statements and income statements. This is often used as part of the application process for a loan, as these statements can give lenders an idea of the financial health of your business. In addition to these services, CPAs can help with other financial issues relating to your small business. For example, they can assist you with determining whether to take on a partner, change ownership percentages or dissolve a partnership, or advise you on the best legal structure for your company. Getting the right accountant for your small business can save you time, money and stress. The costs and benefits of hiring a CPA for your business depend on your business’s specifics and situation. Still, the accuracy and convenience of a CPA can be worth the investment.
They Are Convenient
A CPA is a professional who has met stringent educational and experience requirements to obtain their CPA designation. They are licensed by their state to practice accounting and are well-versed in the tax code, so they can help you maximize your deductions and credits. Hiring a CPA for your taxes will save you time and hassle. They can handle everything from preparing your taxes to ensuring you get all the deductions and credits you qualify for. They’ll also be able to advise on other financial matters, such as the right kind of health insurance policy for your employees or how to keep your business from getting audited by the IRS. They’ll take an outsider’s big-picture view of your company’s finances and make recommendations to help you grow. Moreover, they can prepare different formal financial statements, such as a balance sheet or a cash flow statement. These are important to lenders and often help you secure loans. Another advantage of hiring a CPA is that they can prepare your tax return electronically. This is a requirement by the IRS and will ensure that your documents are submitted correctly and on time.
They Are Affordable
Regarding tax preparation, hiring a professional can be the most cost-effective option. The average fee for a tax preparer for an individual federal income tax return is $176 and rises to $273 when you itemize your deductions.
A CPA is a licensed accounting professional who has completed a program of study and earned a certification. CPAs must pass a rigorous exam and fulfill continuing education requirements to maintain their credentials.
While hiring a CPA can be pricey, several factors can help you find an affordable pro to handle your taxes. First, try to find a local professional in your area. Then, ask about their specialties and experience. A well-trained accountant can answer your questions and offer you a comprehensive estimate of your taxes promptly. In addition, a CPA can help you file the most accurate taxes to get your refund in the shortest time possible. They should also be able to save you money on your taxes by maximizing deductions and credits that are available to you.
