Why Small Business Owners Should Have a CPA for Tax Prep
As a business owner, you probably have many things to worry about while minding the daily operations of your business. From inventory management, customer relations, product development, and the list go on. Although you may want to take on everything by yourself, some business experts say it’s better to outsource some tasks.
In the case of tax preparations, we’d say you should outsource to CPAs like the Honolulu financial advisors at E. A Buck Accounting & Tax Services. Doing this will save you time, stress, and money, plus you will be letting the experts handle the taxes.
What are CPAs?
CPAs, as the name implies, are certified public accountants that offer a number of financial-related services to individuals and businesses who need them. Although they have degrees in accounting, they differ from traditional accountants.
Services that are provided by CPAs include:
- Helping businesses and individuals file for taxes
- Handle bookkeeping for businesses
- Prepare important financial documents for individuals and businesses, such as financial statements
- Provide financial insights for businesses
The services of CPAs also include providing sound financial advice for businesses to boost growth in the competitive market. Generally, the job of a CPA is to help businesses around the financial complexities they may encounter while running their business.
Reasons Why Small Businesses Should Have a CPA for Tax Prep
Tax preparation can be a challenging task for some business owners, but a CPA can help in the following ways.
● They are Tax Experts
Tax preparation for a business is much different from preparing personal taxes. Depending on some factors, it can get complex along the way. If you don’t know how tax filing works, you may get frustrated during the process. Also, there are certain aspects of tax filing that you may be ignorant about. A CPA is an expert when it comes to taxes; they know how to prepare your tax documents, they can file your return, and they also show you ways to reduce your tax burden. If you encounter auditing problems, they can also act as your representative.
Also, the tax code can be complicated, but CPAs can keep up with it and every other change that comes with taxes, so you don’t have to.
● They Can Provide Audit Support
A major difference between a CPA and a regular accountant is that a CPA can represent you before the IRS, whereas a regular accountant cannot. A regular accountant that is not enrolled as a tax preparer can only represent clients in a limited way as permitted by the IRS. This alone is enough reason to have a CPA. If you should face an audit, you will need a tax preparer that can represent you, and a CPA has the authority to do that. More importantly, because they have more experience, they know how to deal with the IRS in a professional way, regardless of the circumstances.
● They Save You Time as a Business Owner
For every business owner, time is an important asset. According to stipulations by the IRS, it can take nearly 20 hours to complete your tax return with deductions. Having a CPA will provide you with the time you need to focus on other areas of your business. Also, some business owners may have questions about taxes and tax filing, and a fast way to get a response is through a CPA. Calling the IRS for an inquiry may take a long while.
● They Can Help You to Review Your Previous Returns
Sometimes there can be mistakes with tax returns that business owners can’t spot. A CPA can review your previous returns for you to see if there were any mistakes made, such as missed deductions. In such cases, they can also amend it for you.
● They Help You to Avoid Errors in Tax Filing
Even minor mistakes can be costly when filing taxes. If care is not taken, you may face legal consequences for them. A CPA can help you avoid costly errors in your tax filing.
There are several advantages of working with a CPA that small business owners can take advantage of. Running a business already comes with its own challenges, and a CPA can help you avoid further challenges in your business. This would not only put your mind at rest but also allow you to focus on other things that demand your attention. So, if you’re wondering if it’s worth hiring a CPA, we believe it’s totally worth it.