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Do I Need a CPA for My Business?

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If you own a business, it might be time to consider finding a CPA. Taxes are inevitable. You will want to consider hiring a CPA for your taxes as opposed to a general accountant or an enrolled agent. There are key differences between a CPA and a general accountant. Accountants can audit your finances, do bookkeeping, and provide analysis. A general accountant does not have to participate in a licensing exam.

A CPA, or certified public accountant, needs to have a license. A CPA meets certain qualifications decided by the state. They must keep up-to-date with current tax laws to maintain their license.

Enrolled agents also have to be licensed and continue their education. They can also help with things like payroll and can represent your business in front of the IRS. However, an enrolled agent does not have the same repertoire as a CPA. A CPA is qualified to do the same work as an enrolled agent but also has a more broad scope. A CPA can help you with financial planning and auditing. CPAs are also licensed at the state level while enrolled agents are licensed at the federal level.

So does your LLC or S-corporation need a CPA? Consider the following:

Value of your time – while business owners don’t work on an hourly schedule, try to estimate how much an hour of your time is worth. Now consider the amount of time you would put into tax preparation versus how much you would earn doing other tasks. You may find the cost of a CPA is less than the value of your time.

Saving money – a CPA has the expertise that takes years to learn. They can help you minimize taxes while taking advantage of any tax breaks or deductions. Most importantly, you won’t pay fines as a result of mistakes you may make when trying to do your own business taxes.

Equipment – the CPA will typically have their own programs and equipment to handle taxes and you will not need to make the monetary investment into programs. You also won’t be investing time into learning programs that could be better spent building your business.

Feel like your small business needs a CPA? At Abbo Tax CPA, we have a team of tax experts ready and happy to help you. Contact us today to speak with one of them.

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