As a small business owner, accounting and taxes can take up a lot of time and focus. Wouldn’t you rather hire a professional to prepare for tax-day and spend your energy on your business?
Here are a few reasons why working with a CPA make a lot of sense:
- Getting started on the right foot makes a huge difference.
Working with a CPA from the start helps in setting up all of the accounting systems and record-keeping the correct way from the beginning, rather than having to go back and fix transactions later.
- Tax planning can have big benefits and avoid big mistakes.
Most people only think about taxes when it comes time to file, but CPA’s can help plan ahead for next year’s taxes while there is still time to maximize the benefits. Whether it’s saving for retirement, managing your investment portfolio, scheduling quarterly payments to avoid a big bill at the end of the year, or making strategic business decisions to take advantage of tax credits and deductions, working with a tax professional outside of tax season can pay off in a big way when the next filing deadline comes around.
- Tax laws change every year, and CPA’s keep up with the latest developments.
The Tax Cuts and Jobs Act of 2017 brought about the biggest change in US tax law in decades, but the law hadn’t stayed the same year after year before that. Every year brings tax law changes, whether from new laws passed by Congress, old laws expiring, or regular changes to keep up with inflation. With the vast array of new programs in 2020 due to COVID-19, this year proves to be more challenging than many years.
- Working with someone that specializes in the tax issues that affect you.
Like attorneys and doctors, many tax professionals specialize in a particular area of tax law: personal taxes, small businesses, large corporations, trusts and estates, nonprofits, and more. By working with a CPA that specializes in small business accounting means you can focus on actually running the business instead of trying to also be an expert in accounting and small business tax law. A CPA also helps to make sure that you are keeping up with state business licensing and other regulatory requirements. It’s not just about taxes!