Tax laws are ever-changing. The pandemic has added another layer of complexity to tax laws related to small businesses. What started as a shutdown for a few weeks last spring has turned into an ongoing nightmare for many small-business owners across the country. According to an article published by CNBC last fall, nearly 100,000 small businesses in the United States have permanently closed since the pandemic began, and many others are in survival mode.
The recent federal stimulus programs will provide some relief to those small businesses that have been in survival mode. These small business relief programs include things like the Paycheck Protection Program, Economic Injury Disaster Loan Program, and SBA Loan Forgiveness, to name a few. However, these protections may be too late for small businesses that have had to make the tough decision to close due to the on-going shutdowns.
For those small businesses that remain open, this on-going crisis has created more chaos than ever, especially in areas related to taxes. Although money may be tight, it is more critical this year for small businesses to consider a CPAs’ professional help. Not only will they ensure that you stay out of trouble with tax-related issues. But, they can also inform you of federal programs that can help your small business wade through the chaos until the pandemic is over.
Here are a few reasons why hiring a CPA for small business this year can be very beneficial.
CPAs Can Help You Set Your Business Up
Despite all the bad news about businesses shutting down, there is a silver lining in all of this. Some new small businesses are emerging, and this could be good news for the economy. With so many unusual circumstances currently taking place in this business climate, it may be best for new small business startups to hire a CPA. Sure, the costs associated with hiring a CPA for small business may be steep for a new business owner. However, with things as hectic as they are, this would be an expense well worth it. They can help you choose the proper business structure for your business, such as sole proprietorship, LLC, C-Corp, and S-Corp. CPAs can also help with budgeting and cash flow projections. They can also help you decide what accounting systems are best for keeping your small business finances organized.
CPAs Can Help with Payroll Management
As a small business owner, you have to wear many hats. One of these hats includes the payroll manager hat. However, if this role is too overwhelming for you to handle yourself, a CPA can assist you. A CPA will ensure that your employees are paid in a timely fashion and ensure the taxes and withholdings are correctly deducted.
CPAs Help with Tax Preparation
One of the most beneficial skills that a CPA can provide is tax preparation. This tax year is very complicated due to tax rules stemming from the pandemic. CPAs are very knowledgeable of the most recent tax laws. Therefore, they can help busy small business clients gather what they need to prepare and file their tax returns correctly. Also, if you should ever have to experience an IRS audit, they are qualified to help.
As this pandemic continues, there are likely to be so many changes related to small businesses bookkeeping that only a professional will be able to understand. As a small business owner, you also don’t want to miss out on opportunities that may benefit your business during this pandemic. CPAs are very knowledgeable about the current business climate. They can help you navigate these rough waters until the pandemic is over.
Are you a small business that needs the help of a CPA, especially during this pandemic? You don’t have to work alone to ensure business continuity. Our highly skilled CPAs are eager to help you keep your business intact and growing for many years to come. Call Tax Avenger in Canton MI today to schedule your Free consultation.