Why hire a CPA firm?
The business and tax environment has become increasingly complex. Most business owners cannot maintain the expertise necessary to ensure compliance in all tax disciplines. Certified Public Accountants (CPAs) are trusted professionals. They help businesses on a full scope of financial and tax issues, including accounting services, auditing, tax planning, preparing financial statements, developing budgets, designing accounting systems, and much more.
Answer: CPAs offer high-level analysis and long-view recommendations encompassing every detail of a financial picture. CPAs have passed a rigorous examination and have met high standards of education. Learn more: https://www.smithschafer.com/what-do-cpas-do/
According to IBIS World Reports, the accounting services industry has grown steadily over the past five years, and CPAs are in high demand. While some business owners can manage their taxes, the clear majority benefit from hiring a CPA with tax expertise. If you are deciding between doing your business taxes internally or outsourcing to a local firm, here are 5 Reasons to Hire a CPA:
1. Maximize Tax Deductions & Credits
Are you confident you are doing everything to minimize taxes for your business? If not, it may be time to review your current situation. One of the significant reasons to hire a CPA is they can maximize your tax deductions and credits to save you money. A CPA firm will evaluate your situation and recommend the best approach to lower the current year’s tax liability, maximize savings from allowable deductions and take advantage of available tax credits so you can focus on growing your business.
2. Reduce Filing Issues
A continuing education requirement keeps CPAs up-to-date about changing tax laws. And since tax reform continues to create comprehensive changes, hiring a tax expert helps mitigate any issues that may come from filing your business taxes.
3. IRS Audit Representation
Another primary reason to hire a CPA for your business taxes is they are eligible to represent you before the IRS in an audit. An audit can be a tedious and complicated process, taking significant time away from your business. An audit involves numerous requests for records, information, and other materials to substantiate items reported on the tax return. A CPA firm generally has experience representing business in IRS matters, so it reduces the hassle of dealing with the IRS.
4. Available Year-round
When you work with a CPA firm, you have access to their knowledge throughout the year, not just during tax season. CPAs have experience with tax planning, and they can provide strategic advice and insight rooted in financial data. Having a financial expert at your fingertips can give you an additional resource for making better strategic decisions for your business.
We recommend meeting with your CPA every quarter and having a tax plan as a component of your overall financial goals. It lays out financial decisions, how to reduce tax liability and increase income. Understanding new tax laws, deductions, and credits are all essential aspects of a tax plan.
5. Saves Time & Energy
Outsourcing or hiring experts may add to your balance sheet, but it can pay off. A survey by The Alternative Board stated most entrepreneurs spend nearly 70 percent of their time on mundane back-office tasks, such as bookkeeping. Smart business owners focus on their core talents and hire others to fill the gaps. Instead of wasting hours researching, planning, and filing your taxes, you could put this effort into your business and generate more revenue.
Even if you complete your business taxes in-house, do you feel completely confident it is correct? Were all available credits and deductions utilized? Are you prepared to defend your return if the IRS audits you? If you answered no to any of these questions, consider partnering up with a CPA to save you worry, time, and energy.
Every business needs a financial and tax advisor. As discussed above, CPAs do a lot more than just crunch numbers and prepare taxes. They provide financial strategies to help businesses save time and grow.
We have over 45 years of experience helping businesses, in numerous industries, effectively grow their business and manage taxes. Our extensive knowledge of tax laws enables us to create proactive solutions, maximizing your tax savings, and supporting overall financial goals. How can we help you?