Do You Need to Hire a Certified Public Accountant?
What is a certified public accountant? A certified public accountant, also called a CPA, is an accountant that has passed specific state exams and extra qualifications. In other words, they are extremely knowledgeable finance experts.
Who May Need a Certified Public Accountant?
Mostly, businesses. Large businesses, small businesses, and startup businesses should all seek the help of a CPA. Whether you work from home, or in a large corporate office, it is crucial to success that the finances are properly managed. Say you have a side income selling homemade knitted crafts on Etsy. In this case, a CPA is probably not necessary. But let’s say you run a home day care, restaurant, or medical practice. In these cases, an accountant could be pretty helpful.
What Services Do They Offer?
Of course, a certified public accountant is going to manage records and do basic accounting. This includes bookkeeping, evaluate profits and expenses, create a budget, and produce statements.
With accounting, comes taxes. A CPA will help a business with tax compliance and tax planning. Because they are so knowledgeable about all the tax breaks and advantages businesses can benefit from, they will most likely be more useful than filing your own taxes.This results in better tax returns, or lesser payments.
Auditing is the process of an official examination of financial records and statements to verify that the accounting and taxes are done properly without fraud or error. Therefore, those who receive a loan are often audited.
In addition to providing financial services, CPAs are also great for general business advice. Because they are familiar with the company’s financial status, they are able to create business plans. Insurance, expanding your business, and remodeling are examples of things you may want a CPA to include in your plan or assist with. They will be able to tell you if you can afford these things, and how it will affect your business.
How to Hire a CPA:
You can find a CPA either through a firm or independently freelanced. Places to search are Yelp, Angie’s List, the AICPA , and the NAEA. All of these websites will provide options for certified public accountants near you.
My dad runs a small business and doesn’t have experience in finances, so he needs help with the taxes. Thanks for explaining how a CPA can help you get better tax returns or lower payments because they are knowledgeable about business taxes. I’ll suggest that my dad looks into hiring a CPA to plan his business’s taxes this year and make his job easier.