Small businesses and individuals often work with CPAs to streamline tax preparation and planning. Many find determining what deductions they can take to be a confusing process — one that CPAs can often help streamline. Getting your taxes done quickly is one of the main reasons to consider working with a CPA. Read on for more information about tax prep services and how to best work with a CPA!
There are two different types of accountants and individuals who help individuals and businesses with tax planning and return preparation. Bookkeepers and non-certified accountants are best for small businesses that only need monthly financial statements and general bookkeeping tasks. A certified accountant, on the other hand, is better for those who need assistance with tax planning and filing tax returns. CPAs and public accountants also prepare audited financial statements for businesses. Make sure to work with a professional who has the skill set to meet your financial needs.
If you’re the owner of a small business, it’s critical to work with a CPA who has experience working with similar types of companies. It’s even more advantageous if you can find one who works with small businesses focused on your industry. CPAs who specialize in small business tax prep services tend to have a fantastic overview of issues you need to look out for and possible deductions to consider.
Most small businesses do just fine working with an individual CPA, particularly if the owner is comfortable performing basic bookkeeping tasks on their own. Once small businesses reach a certain size and start having to deal with issues such as payroll and inventory, it’s often better to hire an accounting firm that can address all of your various financial needs.
Some accountants charge on a monthly basis and include tax return preparation in their fee. Others charge clients separately for bookkeeping and tax prep services. Before selecting an accountant, ask for details about their payment policy to prevent later miscommunication.
According to the National Taxpayer Advocate, small businesses spend around 2.5 billion hours dealing with tax preparation and IRS inquiries. A good CPA can absolutely help get your tax preparation under control. Contact Brown, Chism & Thompson today for more information!
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