Why You Need A CPA
There is a misconception among many small business owners and individuals that they can’t afford a CPA. A qualified CPA, can do a lot more than just fill out tax forms. A good CPA can save you time and money and help you grow your business.
Here are a few examples of services a CPA firm can provide:
- Help you decide what type of entity (such as S-Corp or LLC) and ownership structure to have when you first get started. You should meet with an accountant before you meet with your attorney because often the attorney doesn’t understand which type of entity will best suited from a tax standpoint depending on how the business will be owned and capitalized.
- Design and set up your accounting system. We can do the accounting for you or set you up and train you on Quickbooks if you have the time and inclination to do most of the accounting yourself.
- Ensure that you pay the correct types of taxes in the correct amounts and pay them timely to avoid costly penalties.
- Tax planning to help you pay the least amount of taxes possible.
- Ensure that you send out W2 and 1099 forms to the proper people at the proper times, and also make sure that if you send out 1099s, the IRS will agree with you that those individuals are independent contractors and not employees. Thisis a common mistake that can cost you a lot of money and problems if ignored..
- Analyze financial information, determine effective financial and business strategies, and help businesss and individuals achieve maximum profitability.
- Advise and guide you through an audit if you ever have one.
- Advise you on specific transactions, such as whether it's better to lease or buy or determine the best retirement plan options.
- Compile your financial records and provide financial statements for internal use or third parties, such as banks or investors.
- Help you understand your financial statements. We have the expertise to help you analyze your financial statements to help you better manage your business and maximise profits.
CPAs can answer questions about what kinds of business expenses are deductible. Rules and regulations change frequently. A good CPA will always be on top of the changing laws and regulations and, more importantly, will know what applies to you.