Why Your Business Needs a CPA - Our Guide
Updated: Dec 12, 2019
Managing all financial transactions, statements & cash flows are all critical aspects of keeping the heart of your business healthy. Investing in a team of professionals to help crunch your numbers for you and keep an accurate collection of financial records, filing taxes and even applying for small business loans are necessary for making informed financial decisions.
Many small business owners tend to skimp out on this essential function in the belief that their business is small enough to handle their own finances. Others, on the other hand, may settle for hiring a part-time bookkeeper to keep track of their expenses & P+L. As mentioned above, all enterprises - whether small or large - needs a team to ensure that everything runs smoothly.
Accounting software can only get you so far - because of this, you need a Certified Public Accountant (CPA) that can handle everything all under one umbrella. With tax season coming up soon, big organisations are not the only ones who can reap the benefits of a CPA.
What is a CPA? Why Should I Have One For My Business?
It’s essential to keep in mind that not every accountant is a certified public accountant. To become a CPA, accountants will first need to pass a detailed exam. Other than accounting and bookkeeping, a CPA must have expertise in higher-level accounting, bookkeeping and auditing. Unlike non-CPA accountants, they may represent clients during tax audits too.
Accurate Tax Preparations
Taxation is a crucial requirement of any business, it’s a small mistake that can lead to costly problems for your company. Because of this, a certified public accountant can help you stay up to speed with your monthly bills and will keep essential records, receipts, and documents that you may need for your tax statements.
Beyond making timely tax preparations, they will also help you with finances that you may not understand.
However, this can be done by an accountant or bookkeeper separately. The difference lies in their proficiency in tax laws and tax codes. Not to mention, an accountant does not provide assurance of certification, while a CPA is classified as registered preparers for tax filings.
One of the few eligible to represent your business in a tax audit is CPAs, making them an indispensable asset that can help keep you in the loop of such a time-consuming and stressful process. They are also responsible for protecting your business from falling into any form of violation against tax laws after the audit.
Up-to-Date on Ever-Changing Laws
Tax codes and laws often change through the years, accountants may not be up to the task of keeping track of all the recent changes. CPAs, on the other hand, are responsible for staying on top of updating laws and legislation with the purpose of monitoring your cash flow, managing your finances, and raising capital in case of future expansions.
If you’re looking for an accountant or bookkeeper on the gold coast, get in touch with us today for a free consultation.