Getting to Know a CPA Tax Preparer and Why You Need It

Posted on

Getting to Know a CPA Tax Preparer and Why You Need ItRunning a business gives you many responsibilities including taking care of your accountancy. It is possible to handle this area by yourself you need to ask whether or not it is worth the time. The best solution is to delegate, which means you might hire a professional cpa tax preparer. Well, is it the same as a regular accountant or bookkeeper? Unfortunately, this profession has more responsibilities and can be a great help in your business. You are going to learn more about this line of work here.

cpa tax preparer

Who is CPA?

Well, a CPA or Certified Public Accountant is a qualified person who owns an active or valid license by passing the Uniform CPA Examination. You can find more than 600,000 licensed practitioners out there and they have been licensed by the state boards of accountancy. They handle a wide area of services like financial auditing, financial planning, and tax preparation. You can use them either for your personal or business matters. As for taxes, they are qualified enough to handle numerous tax matters. Not to mention they are allowed to represent taxpayers legally without any restrictions. Here is a note. A license to practice this profession is issued by the state. That means a CPA can only offer services within the state where they obtained their license.

Also read : Business Tax Preparation 101 – Basic Knowledge to Prepare Annual Business Tax

Small Businesses Should Hire a CPA

If you own and run a small business or start-up, you should consider hiring a cpa tax preparer. You need someone who is both skillful and knowledgeable regarding daily business operations, especially in important areas like taxation and financial aspects. Here are reasons why you should seek this help right now:

1. You don’t have the experience

Delegation is the heart of a business. You might need a licensed financial expert to work on your business’s financial matters. A certified public accountant would eliminate the burdens on your shoulders regarding those issues. Not only is he up to date on federal regulations and financial issues, but he also has the best ethical standards.

2. He can organize your business’s financial information

A cpa tax preparer has both skills and knowledge to apply the latest tools and technology for accounting and tax filing. These include software that enables filing processes, quick financial statements and reports, and others. If you do all these manually, you will waste both time and energy.

3. He takes care of your business taxation

The best thing that you can get by hiring a CPA is related to taxation. This professional ensures your business taxes are filed accordingly and he might professionally review your company tax information. Thanks to his updated tax law knowledge for the business he serves, your business won’t face any problems when it comes to taxation. He can even help you minimize your business tax liability!

4. He will represent your business

Due to his professional credentials, a cpa tax preparer can represent you legally on numerous cases involving appeals, audits, collection issues, and many others. He might also give you advice and guidance for avoiding those situations. You can sit and relax while he takes care of the problems professionally.

The Differences between a CPA and Accountant

Even though a regular accountant seems to offer the same services as a CPA, each of them owns distinct skills. Accountants need good management of financial data, advice, and analysis, reporting compliance, and performing finance report preparation. As for the CPA, they are both knowledgeable and trained. It is safe to say that they are the high-tier of accountants. They have several advanced skills that regular bookkeepers don’t. For example, they can see the big picture of their client’s business. They master accounting and business concepts. Next, they also are good at research, analytics, and problem-solving. Not to mention they have great communication skills, which will be useful when working with various types of clients. Next, they can develop professional project management and delegate responsibilities. Another skill that they can be proud of is ethical standards. They ensure your business or other clients adhere to ethical and legal standards. They even would report those who refuse to do so.

How Can You Find a Good CPA?

Now that you have recognized the importance of a cpa tax preparer for your business, you can start looking for the right person. This task is not as simple as you think because you might find thousands of active practitioners out there. So, how can you determine an expert that fit your business needs? Well, here are some thoughts:

1. Specialization does matter

The most important thing to inspect is related to their specialization. No CPA is good at anything. They usually focus on a certain accounting area and serve clients based on their specialty. For example, you can find an expert in forensic accounting, business, tax preparation, and more. What you need to do is to pick one that matches your need.

2. PTIN verification

The simplest way to find the best and most legal cpa tax preparer is by verifying their identification number or PTIN. The best reference to find this number is at the IRS official website. Make sure that the person who you are going to hire owns a valid number.

3. License verification

The next important thing to inspect is none other than their license. The states issue a license to qualified CPAs. You can verify it by searching your state’s database. Take a look at its status, issue, and expiration dates. Make sure that this person doesn’t have any violations or problems with his career.

4. Years of experience

One of the best ways to find a perfect cpa tax preparer is by looking at their experience. Years of practice show how much knowledge and understanding that they have in related industries. A professional service would file 11 or more tax returns each year and is willing to provide e-filing services.

Verdict

Hiring a regular accountant for your small business sounds insufficient. On the other hand, a cpa tax preparer gives more than a common bookkeeper can give. What you need to do is to find the right person to work on your company’s financial and tax matters. It doesn’t matter if you need to spend more money on it as long as your business runs accordingly even without your intervention.

Leave a Reply

Your email address will not be published. Required fields are marked *