A CPA can provide its clients with a broad range of financial and tax services, including Tax Preparation, Tax Planning, Financial Planning, Accounting, Advising…. A lot of business owners, especially small businesses, feel more comfortable and confident in hiring a CPA, especially when their needs are beyond straight forward tax preparation; they are more likely to hire a Tax and Financial Advisor.
1- Taxes are becoming more complicated with continuous new rules and regulations. Since enacting the Tax Cuts and Jobs Act (TCJA) in 2018, the Treasury Department and the IRS have issued several proposed and final regulations as well as revenue rulings and procedures, that gives more details and clarify a lot of ambiguities within the TCJA.
All CPAs are required to keep themselves updated regarding any changes in the tax law and its interpretations by attending at least 40 continuing Professional Education (CPE) courses each year in the area of Taxation, Accounting, and Auditing.
2- Tax preparation is not only a simple checklist and a good software. Tax research has become more and more essential in tax practice. Although passing the CPA exam, and accomplishing the experience required to get the License, it gives the CPA the right amount of knowledge in the Taxation field.
However, due to the vast volume of the tax laws and interpretations, having a proper technique in tax research and mastering it will help the client tremendously. Especially in some unique situation that requires the resolution of tax problems and making sure that the CPA is applying the right tax treatment, for the peace of mind for the client as well as not missing any opportunity to save taxes.
3- Tax planning is one of the essential services provided by CPA’s in the field of taxation. Having Tax knowledge and expertise is not sufficient, especially for business owners, accounting experience is a must for most of the tax practitioners.
A big part of the CPA program is accounting, and whether providing accounting service for the client business or helping the client by providing advice to maintain their books, knowing the accounting principles is critical. A good CPA can understand the big picture for the client and provide an efficient tax planning by synchronizing the accounting of the business to their taxes to give the minimum charges in line with the tax law.
4- CPA can help small business owners to boost their business by providing a clear picture of the financial performance and position of their company. The CPA’s job is not limited to delivering a Balance Sheet and an Income Statement at year-end and to prepare the taxes for the business owners.
A CPA can assist the client in monitoring their business by providing a budget for their business owners, which is considered a good map or control for the spending of the company. Also, a CPA can offer a future forecast that can help the owners predict their business performance and clear the road for excellent and effective future financial planning.
5- Whether you are a client or an investor, and you need help understanding the financial aspect of any potential new business. Even if you are acquiring a new asset as part of the development, and you need a clear and scientific picture of this opportunity. A good CPA can provide you with a clear road map in order to make the most logical decision. An effective feasibility study requires proper accounting and financial skills that can only be found is a CPA, who will help you rationalize any business decisions for the future.
6- A CPA can provide small business owners with a wide range of financial Statements and services that may be required by external parties, especially lenders such as banks and financial institutions. A financial statement if the most requested document by lenders for business owners, having an established CPA working with you can make it easier and faster for a business owner to acquire such a statement. Whether compiled, reviewed, or audited financial statements are requested, and only CPA’s can provide such type of services.
Tax Avenger Canton MI is dedicated to providing exceptional service to our clients. If you are starting a business or your business needs tax and accounting services, we can help. Our services include business accounting and payroll services, individual and business tax preparation, tax problem resolutions and more! With 20 years’ experience, our firm prides itself on the extensive international and local experience in accounting and taxation. Call today and speak with a CPA to learn more about how we can help! Free Consultations.