Why Your Small Business Needs a Top Tier CPA

Every business, no matter how small it is, requires a tax and financial advisor.  However, your business needs not just an accountant, but a top tier Certified Public Accountant [CPA]. A CPA is an accountant who has passed a licensing examination in a state. CPAs earn a high-level certification that is based on a combination of examinations, licensure, practice experience, and education in topics that range from tax laws to ethics. 

The majority of small businesses use the services of an accountant. For a very small business, an accountant may handle some of your business accounting needs, but there are specific instances in which the services of a top tier CPA will benefit your small business. The benefits include:

  1. Licensing

A Certified public accountant has been licensed by the state through a thorough examination process. An accountant has not. Regarding their licensing, CPAs are required to stay up to date with the tax code. There are continuing education requirements that must be met so that one can maintain licensure. That means a CPA is current on financial regulations and tax codes. 

  1. Taxes

CPAs are more conversant with tax laws than accountants. Much of the continuing education courses and licensing exam taken by the CPAs is mostly about tax code.  That means they are familiar with the current rules. You can hire a good CPA from pstein.com to take care of your tax matters.

  1. Financial analysis

There are many types of professionals who can handle your daily financial duties. A bookkeeper may handle recording business income and expenses. An accountant can then review the information and prepare financial reports, such as profit and loss statements and balance sheets. But a certified public accountant will provide in-depth financial analysis, and offer the small business owner on tax and financial matters.

  1. Audit support

A CPA can represent your business before the Internal Revenue Service [IRS]. This is a vital reason to use a CPA rather than an accountant because an accountant cannot represent your business before the IRS. An accountant is only allowed by the IRS to represent a client in a very minimal way. If you want your business to be audited, you need to be able to rely on a good CPA who has full authority to represent you before the IRS. 

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Many small business owners do not prefer to hire a certified public accountant because it costs more than an accountant or bookkeeper. You don’t have to choose between them, you can use all of them. You can use a bookkeeper to take care of the day to day financial duties, such as filling income and expenses, hire an accountant to prepare the financial reports. And then finally, you can hire a CPA to produce your yearly expenses.

Adam Hansen

Adam is a part time journalist, entrepreneur, investor and father.