As an entrepreneur, you are probably aware of your strengths and weaknesses. While you are good at doing business, there are some tasks that must be delegated to the right people. Accounting & taxes is one of them. If you are wondering what a Phoenix, Arizona CPA can do for your small business, here is an overview for your help.
For the uninitiated, CPAs are accountants that specialize in taxes, accounting, and finance-related matters. Before starting a small business, you should consider meeting a CPA to know about business structures and how you can save money. When facing an audit, your CPA is your key resource for advice and can represent your company before the IRS. So, are CPAs the same as accountants? The short answer is no. Accountants have a degree in accounting or finance, but CPAs also have additional designations. CPAs must clear Uniform CPA Exam and fulfill the necessary requirements to practice in Arizona.
What can CPAs do?
As far as small businesses are concerned, CPAs often don many hats. CPAs are qualified to handle all sorts of tax-related work and often guide and manage recordkeeping and bookkeeping for clients. They also help clients with filing tax extensions. Compliance is one aspect that many business owners don’t want to deal with. With a CPA working for your business, you don’t have to worry about all that. They have the expertise and knowledge that can help prevent tax issues, and when needed, they can even negotiate with the IRS.
CPAs are also important for small businesses to make sensible financial decisions in time. These professionals are not merely trained at handling account statements and financial documents, but they can offer advice and help on various matters concerning financial risks and minimizing future troubles. Many entrepreneurs rely on their CPAs for suggestions related to complex financial matters.
CPAs can also help with forensic accounting. They can prevent fraud and keep a check on your records and books. If your company isn’t using payroll software, CPAs can help with that too. From the initial launch of payroll software and migrating data to management of future records, they can handle important tasks effortlessly.
No matter what type of business you own, hiring a CPA will eventually benefit your company’s interests. Not all CPAs are the same, and therefore, you have to do your homework and find one who has experience working in your sector.