Oftentimes, entrepreneurs wonder if they need a CPA for their business. I wanted to provide 11 reasons it would benefit you to utilize the services of a CPA. If you would like to prepare your taxes, understand and manage your investments, save money, and plan your retirement effectively, a CPA can help.
1.) Improve Your Credit Rating
Your CPA can help you identify ways to improve your credit beyond just paying your bills on time.
2.) Understand Tax Law Changes
Keeping up with tax laws can be time-consuming for an individual or an organization. Missing important key dates and updates could potentially have severe effects on your business. By using the services of a CPA, you can stay abreast of the latest tax changes and benefits.
3. Reduce Your Debt
An experienced CPA can help you negotiate and implement strategies for debt reduction. Having a good debt to income ratio can better position you for funding and access to resources.
4. Earning More Than $200,000/year
Having the support of a CPA helps you better position yourself for understanding your finances. Top earners are more likely to be audited. Therefore, accuracy of documents, and proper reconciliation are essential.
5.) Diversity in Revenue Streams
Having multiple W-2s can be challenging to manage without a CPA. A CPA can help streamline your reconciliation of statements as well as taxes. Also, if you are self-employed, a CPA can help you understand tax information that you may not be aware of that could help lower your tax liability.
6.) You Just Inherited Money
Inheriting money can seem exciting at first but not knowing how to properly navigate the specifics around taxes could be costly. A CPA can help you understand existing and future taxes.
7.) Large Financial Gift Giving
A CPA can support you in providing information around the tax benefits when giving large gifts. Classify your gifts correctly to best maximize your ability to give.
8.) Keep Accurate Financial Documents
A CPA is trained to accurately reconcile your statements and assist with forecasting. Having accurate financial statements can help you develop strategy and be prepared when these documents are needed for certifications, applications, etc.
9.) You Own Real Estate or Property Rentals
Having a second property and renting it for special events, in popular locations, and as a vacation offering is gaining popularity. A CPA, can help you understand all of the tax situations related to your properties.
10.) You Owe Back Taxes
The IRS will not wait for their funds if you owe back taxes. A CPA can help you understand what you owe and act as your representation to the government.
11). When Life Changes
Marriage, Children, Divorce, Retirement, are all life changes that affect your finances. A CPA can help you navigate through these changes.
In conclusion, hiring a CPA can help you save time, money, and frustration. Timothy E. Brown, CPA, LLC can support your accounting needs. In addition to CPA services, Timothy E. Brown, CPA, LLC can also help your fundraising and board governance efforts with customized training. Learn more at www.tebcpa.com
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