Do I Need A CPA For My Small Business?

Even small businesses in Los Angeles worry about tax, account handling, and other implications. Handling all the tasks single-handedly can be inefficient and cause chaos, so many small business owners hire a CPA Marina Del Rey to handle these tasks.

What Is a CPA?

A CPA (certified public accountant) is a skilled financial professional with a license to provide accounting services to the public. They pass the strict Uniform CPA Exam, comply with additional state requirements, and have a bachelor’s degree with at least 150 credits and one or more than two years of public accounting work experience. A CPA supports business owners by tracking their finances, such as taxes and government filings, and also provides sound financial advice.

When Should a Small Business Hire a CPA?

Small business owners who have started a business for the first time and require help choosing and planning their business structure should hire a CPA. Also, those who lack the time or resources to handle taxes themselves should hire a CPA. Even those who have been in business for some time may require the skills and experience of a CPA to keep complicated tax situations in check while staying informed and compliant with laws.

Why Should Small Businesses Hire a CPA?

A CPA Marina Del Rey is a specialist who can help a small business in various ways, such as analyzing financial statements and giving objective advice. Here are some of the ways CPAs help small businesses:

● Manage Finances: They can provide financial advice to a business, telling them how to set up their business with proper structure and plan for the future. They can help chart the best route for growth while minimizing risks and maximizing profits.

● Plan Taxes: Taxes can be complex for small businesses not used to handling them. Business owners may stumble upon their own mistakes related to tax laws, often paying more than necessary. A CPA eliminates the room for worrying about tax planning by helping navigate the complicated tax filing process.

● Prepare Detailed Financial Statements: A CPA can assess the effect of various expenses and deductions, including factors like amortization or depreciation on a business’s income statement. They can also calculate the amount of money they can save from reducing owed taxes and help file a tax extension. CPAs ensure businesses meet all legal requirements like filing returns on time and paying all outstanding payroll taxes when due.

● Deal with the IRS: If an IRS audits a business, a CPA can help it defend itself.

Conclusion

Small businesses in Los Angeles or surrounding areas can hire a CPA Marina Del Rey when they need assistance in choosing and planning their business structure or don’t have the time or resources to deal with taxes on their own. They can also help mitigate complicated tax situations and prevent them from recurring.