Why Do You Need A CPA For Business? If you are a small business, you might need a tax advisor. But your business needs a Certified Public Accountant and not just an accountant. But why do you need a CPA? And is there any difference between accountant and CPA? Let’s find out:
The Difference Accounting can be done by you as well, but the accountant is professionals who abide by the rules and regulations which are put-forth by FASB, i.e., Financial Accounting & Standards Board. And CPAs are those accountants who have cleared the licensing examination in the state. You can take the services of CPA firms (like Manhattan CPA) that hires them. While accountants may fill some of the accounting needs, but some circumstances use the services of a CPA.
Many Benefits Of Going With CPAs Even if your business is very small, you need the services of CPAs for multiple reasons.
Licensed A CPA is licensed by the state, and they have to keep up with the current tax laws to maintain the license. The accountants aren’t licensed. A CPA exam is rigorous which means that these
professionals have the credibility and the expertise as well. Once they have gained the license, they have to continue and meet the education requirements to maintain the license. But accountants don’t have to meet such requirements so their knowledge may be limited.
Tax Laws The tax laws keep on changing and keeping track of them can be very difficult. If you are not constantly paying attention, you might miss on recent changes. As CPA has to meet the continuing education requirements, they are well aware of any change in laws.
Financial Analysis Bookkeepers perform the routine tasks of record input. The accountants use these inputs to prepare and analyze the financial reports. But CPAs do more detailed analysis, and they advise on the financial matters
Audit Support One of the biggest reasons to use a CPA for the business is that a CPA is eligible to represent you in IRS audit, while the accountant is not. If you are planning to have a professional do the tax preparation, just make sure that the person has the authority to represent you.
In The End A better way is to take the help of a CPA firm (like Manhattan CPA) to make sure that your accounts are in best shape and you are adequately represented in case of IRS audit.