5 Major benefits of having a CPA for your small business
Updated: Jul 27, 2022
Owning your own business can be exciting, but it can also mean you are responsible for absolutely everything. Payroll and taxes can get complex and may overwhelm as you start up or as your business grows larger. That’s where a CPA, Certified Public Accountant, can help take a big part of the stress out of your professional ventures, leaving you time for what you really want to focus on. There are many reasons to consider having a CPA help but here are some for today:
1. A CPA can do your payroll. No one wants to short themselves or their employees. It can be stressful to have pay delayed or incorrect due to errors. With a CPA taking care of bookkeeping, the payroll runs smoothly, and you have more time to focus on other important areas of your business.
2. Payroll taxes must be correct. Payroll taxes are the amounts withheld from an employee’s wages and paid to the federal and state governments by the employer. A CPA can ensure that the withholdings are correct and help if any changes need to be made throughout the year.
3. A CPA can prepare and submit your tax returns each year. Business taxes are important, and your CPA will be able to help you find ways to maximize your deductions, avoid substantial penalties, and help limit your tax liability. If you work with your CPA throughout the year for monthly/quarterly financial reports, then it’ll be an even easier process for you.
4. A CPA can represent your business at a tax audit. Some other financial professionals, like accountants, are only permitted to represent their clients in a restricted manner. A CPA has full authority to represent your business if an audit or appeal occurs.
5. They know the laws. No, they REALLY know the laws. When the laws change, CPAs know about and can implement the changes to avoid any issues. CPAs must pass the Uniform Certified Public Accountant Examination, a complex 16-hour test. They also must meet state qualifications and must stay current with the tax laws to maintain their license. If you have a question, your CPA is most likely to have the answer or be able to find it.