As a business owner, one of the aspects of running your business is managing its finances. Making mistakes on your tax returns or going beyond your set budget can get you stuck in a tough situation. Hiring a certified public accountant or CPA to maintain healthy financial records, apply for loans, and file your tax returns is a smart decision you can make for your business. A CPA will manage your financial documents and help you make important decisions about your business’ future. So why should you hire Herbert Kraus, CPA?
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They are Licensed by the State
A CPA possesses a state-approved license that makes them the right professional to manage your business’ finances. They stay up-to-date with the current tax and accounting laws. CPAs have to follow a lot of standards to keep their license. Because of their professionalism and skill set, they can efficiently handle complex financial matters that concern your business.
They are Familiar with Tax Laws
CPAs must be knowledgeable about tax laws that concern various businesses. Regardless of the kind of business you run, a CPA can handle any tax situation. Also, CPAs stay up-to-date with current changes in tax laws and regulations. When a CPA files your tax returns, a CPA will make sure the criteria and standards of the IRS are met.
Moreover, a CPA will assess your situation and recommend the right approach to lower your tax liability in the current year, maximize savings from allowable deductions, and take advantage of tax credits so you can concentrate on your growing your business.
They Can Help with Business Formation
The legal structure you use for setting up your business impacts your taxes, liability, and reporting requirements. Also, applying later on can be hard and may require reapplication for licenses, bank and insurance company notification, as well as getting a new EIN among other things. A CPA can help you set up a business correctly to avoid mistakes that could cost you much more to fix.
They Can Represent You During IRS Audits
CPAs are eligible to represent you before the IRS in an audit. Audits can be tedious and complicated, which will take a significant time away from your business. They include many requests for information, records, and other materials to substantiate items reported on your tax return. With the services of a CPA, you don’t have to deal with the IRS yourself.
They Help you Save Money and Energy
Hiring a CPA for your business may add to your balance sheet; however, it can pay off. As a smart business owner, you concentrate on your core talents and hire others to fill the gaps. You don’t waste hours researching, planning, and filing your taxes. Rather, you put this effort into your business and ensure it generates revenue.
Some businesses choose to complete their business tax in-house, but there is a risk of errors in this decision. They may have not used all available credits and deductions. They may not be ready to defend their returns if the IRS audits them. If you don’t want to deal with this situation, you must consider working with a CPA to save you money, energy, and stress.