As a small business owner, it’s no secret that you have to be able to juggle different roles. One of these roles may be spending your productive hours creating financial reports and trying to manage your books, but in the end, you might feel there are few results to show for it. Between the complex tax laws and the ever-changing world of small business accounting, hiring a certified public accountant (CPA) is an investment that can make a huge difference in the growth of your business. Their knowledge and expertise is invaluable. Below are just a few reasons why you should partner up with a CPA.
Setting Up Your Business
Depending on your situation, it’s important to establish which business entity best suits you. Do you remain a sole proprietor or an LLP? Would a corporation suit you better than an LLC? These are just a couple of questions that your CPA can help answer. Your accounting professional will be able to set up a business entity that will protect your assets, while enjoying the most tax advantages. Apart from this, they can also set up accounting software and provide you with a tips to help your business operate at its best.
Staying Updated with the Changing Tax Laws
The tax laws are ever-changing and staying updated with the changing regulations is a job all by itself. Instead of focusing on keeping up with the laws, your time would be better spent focusing on the growth of your business. One role of a CPA is to stay abreast of all the laws and business regulations, allowing them to pay attention to detail to all the tax deductions and credits available to you. Having someone responsible for this will also help your business comply with all the required laws, avoiding potentially hefty fines.
It can be an intimidating process when your business is scheduled to be audited by the IRS, but having a CPA in your corner can help. They can assist you with the following:
- Preparation for the process, including gathering necessary documents and numbers.
- Walk-through of the process, so you know what to expect.
- Best practice for keeping records and receipts.
Most importantly, a CPA will not only act as an advisor, but they will also act on your behalf in case of an audit. Think of them as your representative when dealing with the IRS. They can meet with the IRS as a middle person so that you do not have to meet the IRS face to face. They can then gather answers from you on items and report back to the IRS agent, saving you time and the uncomfortable situation of meeting the IRS yourself.
Avoiding Expensive Accounting Mistakes
Accounting errors, even the smallest errors, can be quite expensive. They can range from improper bookkeeping to failing to file and pay your estimated taxes. For many small businesses, mismanagement of cash flow is the top reason for failure. These errors or omissions can mean missing out on tax deductions and credits, which could result in having to pay more money to the IRS. For your business to grow, you need to keep track of all the money coming in and going out of the business accurately.
The need for a CPA is often underestimated, however; the return on investment of hiring an accounting professional outweighs the costs. You will have more time to focus on the important things and reduce stress and uncertainty when running your business. For help with your small business’ accounting needs, call the experts at Bodine Perry at (855) 851-8318 or visit www.bodineperry.com.