13 Jan Why Should I Hire a CPA Firm? Here Are 5 Excellent Reasons
Why Should I Hire a CPA Firm? Here Are 5 Excellent Reasons
Sure, you can probably do your taxes. You might think you don’t need a full-service CPA firm because you can pay your bookkeeper to handle everything. But when you really dig down, you may find that your tax return isn’t quite that simple.
In reality, a full-service CPA firm is an invaluable resource. Just as you rely on your bookkeeper for day-to-day accounting, so do you rely on your CPA firm for everything from preparing specific financial documents to tax planning and tax return preparation.
Meeting your accountant at tax time may be enough, but handling most of your accounting needs year-round can be a valuable service. And having a CPA firm on staff can give you access to tax planning and preparation, as well as year-round financial and legal advice. This can help you make smarter financial decisions and avoid problems down the road.
This article will help you learn who benefits from hiring and the five top reasons most people hire a CPA firm.
How Do You Choose a Tax Service Provider?
The types of tax preparation services are often a source of confusion when tax season approaches. The right decision comes down to your circumstances and requirements.
You may find an enrolled agent (EA) to be a great and cost-effective option if you have a simple tax return (e.g., taking the standard deduction on your W-2 income).
An accountant will better assist you if your taxes are more complex due to owning a business, having multiple income sources, investing much of your income, or other circumstances.
An accountant who has passed the CPA exam can represent you before the IRS. CPAs are licensed, accounting professionals.
CPAs may work for themselves or as part of a firm, depending on the setting. The cost of tax preparation may be lower for independent practitioners, but their expertise and capacity may be less.
You gain broader expertise by partnering with a CPA firm, even if it is more expensive. In addition, CPA firms provide more support for their partners, enabling them to handle a greater volume of work.
5 Reasons People Hire CPA Firms
Hiring a CPA firm is a tremendous investment, but the benefits of doing so can be substantial.
A professional firm can offer many benefits to a business. Most CPA firms provide comprehensive accounting, auditing, and tax services to businesses of all sizes. They can also advise companies on various financial issues, including cash flow projections, financing, and capital structure decisions.
While the reasons vary, there are a few popular motivations for hiring a CPA firm to handle accounting and financial concerns.
1. You can redirect focus
Many business owners share the frustration of not focusing on revenue-generating activities. Your mind is somewhere else because your attention is diverted to the tasks that drain your energy. You can ease that tension by implementing a system that helps to delegate duties that drain you.
.Outsourcing financial aspects of your business to a CPA firm will allow you to redirect your time and energy to other critical aspects of your business. For many business owners, financial knowledge is a niche area of business that they have little expertise in.
By outsourcing your financial records to a firm that specializes in this area, you not only free yourself from this time-consuming task, but you also free yourself from the risk of making mistakes that could cost you financially.
2. Profitability and growth for your business.
You may not be taking advantage of all the tax savings and tax deductions available to you. Tax laws seem to change almost weekly.
The most critical question to ask is: ‘When you save, are you putting it where it can grow?’. Many organizations have implemented cost-cutting measures to reduce their overall expenditure, but they have not put the money where it can help the business grow.
With the help of a CPA firm, you can make the most informed decisions and profit-making strategies, taking into account the most current, up-to-date tax rules.
3. Compliance Support
Documentation and compliance are required for every business. Government agencies at all levels require documentation and compliance.
Taking on this responsibility can be an overwhelming task, and doing something wrong can cost you both financially and reputationally.
Full-service CPA firms are familiar with filing requirements to ensure your business complies with federal and state laws, as well as those of banks, investors, and others.
4. Major Life Changes
Significant life changes like marriage, divorce, and buying a home can impact your tax filing. You may need to report additional income, which may require you to file a tax return for the first time.
Additionally, if your career changes or if you receive a raise, you may also receive a new W-2, which can affect your taxes. It’s best to consult with a tax professional to determine how to best document these changes for tax time.
5. Year-Round Access
You generally only see accountants and CPAs at tax time. But the rest of the year? They’re usually ghosts.
Having a CPA firm on your side throughout the year provides you with full access to their expertise. A CPA can offer strategic advice and insight based on financial data, and they have experience with tax planning. Your business can benefit from having an expert in finance on hand to help make better strategic decisions when you need it most.
Let Dempsey Vantrease & Follis PLLC Be Your CPA Firm
Dempsey Vantrease & Follis PLLC can assist with all your accounting and tax needs. From our Tennessee offices, we provide various accounting services for business and individual clients. Getting started takes just a phone call; rest assured your accounts are in the hands of a team you can trust.
Contact us for more information about our services.