The question in the title could go a little further: “…when you always have the option of contracting the services of a simple bookkeeper?” These next few lines are going to try to briefly provide you with an answer.
Benefits Of CPAs For Any Business
An accountant is a financial and tax professional who obeys particular rules and regulations, along with the Generally Accepted Accounting Principles set by the Financial Accounting Standards Board. On the other hand, a Certified Public Accountant is an accountant who has passed a licensing examination. While an accountant has the ability of catering to small businesses by filling some of their accounting needs, there are cases when it is much more advantageous to hire a CPA to do the job. These people are licensed by a certain state and they are up to date with the latest tax laws within that respective state. The licensing process itself is a complex; after the licensing process, a CPA must continue to comply with all the educational requirements imposed in order for them to get to keep their licenses.
More Reasons To Hire A CPA
The majority of CPAs are familiar with small business taxes also so no matter how small your business might be, you have plenty of reasons to rely on the services of such a specialist. They are also familiar with the tax code, while accountants are usually classified by the IRS as unenrolled preparers. A CPA is also going to performed detailed analysis and provides you with the financial advice you need due to their high level of training. Plus, CPAs are also eligible to represent you before the IRS. Picking a CPA against an accountant is like choosing the services of a http://www.247locksmithservice.com/ professional rather than trying to change your own broken key lock.