Starting a Small Business

The Benefits of Using a CPA for Your Small Business Taxes

by
Tera Kovanes
on
10/18/2016
The Benefits of Using a CPA for Your Small Business Taxes

Every business, no matter how small, can benefit from working with a Certified Public Accountant (CPA) for advice. There are many advantages to using a CPA for your small business. Not all accountants can call themselves CPAs. They are required to adhere to strict professional requirements that include continuing education and high ethical standards. 

Taxes: Knowledge and Experience

CPAs are licensed and must pass a rigorous exam to qualify. Knowledge of the tax code is the hallmark of CPAs.  They must complete at least two years of work experience in public accounting, auditing or work under a licensed CPA. Hiring a CPA to do your taxes could lead to business growth opportunities you may have never considered. When comparing CPAs, your decision on what qualifications to seek in a CPA must also take into consideration what services your business needs from an accountant. You need to determine how complex your situation is and make sure your choice is a wise one.  With all the talk of how complicated the tax code has become, it is somewhat clear that DIY options can rarely consider all of the tax planning options.

Audit Support

CPAs have full authority to represent you at an IRS tax audit. These professionals know how to handle IRS bureaucracy. They not only can complete business tax returns but help you make more high-level business and tax decisions.

Financial Analysis

While bookkeepers take care of records input, CPAs do a more detailed and thorough analysis on tax matters. This way, you get the best advice. Plus, you get advice on the eligible deductions while staying in compliance with IRS regulations. These tax pros can even assist you in setting up a record keeping system tailored for your business. A good CPA will help you understand how to maximize your business finances. In addition, some investors may require that your financials were prepared by a CPA before closing a deal.

Money and Time

The expert advice that you receive from a CPA can translate into saving thousands of dollars. It’s an investment that pays off. And the more complex your business taxes, the more time it takes you to complete them and file them. A CPA saves you time and can complete your business tax return in a fraction of the time it would take you. The hours you spend laboring over your business tax return can end up costing you more than the services of a CPA. Less time on taxes means more time to do what you do best – run your business. 

Tax Preparation Fees May Be Deductible 

As long as you meet eligibility requirements, the fees entailed with professional tax preparation may be even be deductible on your tax return. Tax preparation fees are considered a miscellaneous deduction. This means that you must itemize the deduction in this category in order to claim it. It’s important to note that miscellaneous deductions must exceed 2 percent of the adjusted gross income.

All of the benefits of utilizing a CPA should be considered by any small business owner. IRS representation, audit support, more money and saved time, along with the potential to deduct the tax preparation fees, are all the benefits that should not be ignored.

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Tera Kovanes

Tera Kovanes

Tera D. Kovanes, CPA is a Certified Public Accountant (CPA) practice based in Henrico, Virginia. She can assist you with your tax preparation, planning, accounting, payroll and bookkeeping needs. She specializes in outsourced or part-time CFO work. In addition to being a CPA, she also is a Certified Fraud Examiner.

Tera D. Kovanes, CPA
28 reviews

Virginia

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