Whether running a small business or needing tax help, hiring a CPA can save you time and money. While you can file taxes using software or a third-party service, CPAs offer significant benefits that can improve your financial health.
They specialize in recordkeeping, preparing important financial documentation and filings, and providing tax advice and planning. They can also aid you during an IRS audit.
Tax Preparation
Finding a credentialed tax professional who understands the IRS code is important. You can verify their credentials by searching the IRS’s directory of tax professionals and finding ones that have the proper credentials. Also, be sure that any preparer you choose offers e-filing and can represent you before the IRS for matters related to your return.
Small business owners should consider a CPA for their tax preparation needs, especially when filing complex returns or looking to maximize deductions. They can help you comply with new tax laws and understand the impact of a changing tax code on your business. Additionally, they can help you structure your business to save you taxes from day one, even before you register.
Audit Support
In addition to tax preparation services, a Wichita CPA can offer strategic insight and assistance with various financial matters throughout the year. They can also help you stay current on tax code changes and ensure that your business takes appropriate deductions.
Another benefit of working with a CPA is their ability to assist in the event of an audit. If you receive a letter from the IRS, your CPA can represent you and provide the necessary information to resolve the matter as quickly and painlessly as possible.
You must put advisory services at the center of your client relationships for an accounting firm. This is a way to ensure your clients get the help they need.
Tax Planning
CPAs can help you minimize your tax liability and avoid penalties. For example, they can check that you claim all the proper deductions and credits. They can also help you plan by analyzing how different expenses and investments may affect your taxes.
CPAs have a thorough understanding of federal and state laws. This gives them the insight to ensure you pay the lowest legal taxes each year. This is especially important for businesses that operate across multiple states. They can also provide expert transaction consultation for business sales and acquisitions. In addition, they can offer advice on how to structure your business to reduce your tax burden. This helps maximize returns and increase your profitability. It also lets you focus on your core business activities instead of spending time on your taxes.
Financial Advice
CPAs are trained to be financial specialists. They offer services that help their clients legally lower tax liability, compute taxes on diverse investment portfolios, find applicable deductions and credits, and more.
For businesses, they can recommend the most tax-efficient legal structure. This includes choosing a sole proprietorship, partnership, LLC, corporation, or co-op. This choice impacts the company’s liabilities, taxes, and reporting requirements.
They can also create a financial plan that helps the business save money and invest in its future. This will include identifying tax deductions the company may need to be aware of. It will also involve laying out strategies for dealing with an IRS audit. This information is invaluable to any business. It can prevent costly errors and reduce the risk of an audit.
Accounting Services
Hiring a CPA to manage your accounting needs is vital for running a business. From ensuring that all payroll taxes, insurance and retirement withholdings are deducted correctly to tracking your accounts receivable and payable, a qualified CPA can help you get the numbers right.
In addition to preparing tax returns, CPAs can handle other accounting duties, such as creating budgets and forecasting revenue. They can also offer guidance on structuring your business for tax purposes and tips on minimizing your tax bill.
Hiring a CPA is worth the investment whether you want to increase your refund or save money on your taxes. Learn more about the benefits of working with a CPA and schedule your free consultation today.
