Successfully run businesses don’t reach that level of success just out of hard work and dedication. To achieve a successful business you need to have accurate and actionable information that is delivered on time. It is also achieved through understanding the message that your financial statements project.
But even more crucial is that reaching a level of success in your business requires having right people around you. One of these important people is the CPA. Most often CPAs provide a higher level of service that businesses do not receive from their accountants. Commonly difficult financial questions will arise in your business that will require you to engage the services of a CPA.
Some of the difficult financial questions that could arise include:
• Am I paying too much on income tax per year?
• Am I receiving timely tax planning to avoid surprises at the end of the year?
• Should I set up a deferred savings program to enable my business to maximize on tax advantages and what should this program be?
• What specific changes must I make to take my business to the next level of profitability?
Questions like these seldom have a common answer. Answers will vary depending on the state of your business, its financial situation and the financial goals you set for yourself. As an ordinary person, balancing these factors to come up with a befitting response may be overwhelming. This is why you need a professional with the knowledge to dissect your situation to give a right solution. Usually that professional is the CPA.
Moreover, financial situations are never static. It’s possible for your financial situation to change suddenly and dramatically from one year to the other. This is because events in life are not static either. Jobs, births, marriage, divorce, settlements, bankruptcy, new businesses, etc, can all bring about dramatic changes to your financial status and cause your tax situation to become one labyrinth of questions and challenges. And with a continually changing face of tax laws, such events can easily get you overwhelmed. A simple mistake in your tax information could easily degenerate into a tangle with the IRS and result in serious financial and business consequences with huge penalties, interest, late fees, etc.
Under such a situation a CPA is needed. A CPA understands taxation and will be able dig deep into the specifics of your situation, ask the relevant questions and give well-thought out solutions. In short the CPA would have saved you one hell of financial mess.
Most often when people are searching for a CPA the first question they ask is: How much will it cost to hire one?
The answer to this is; it depends. There is no uniform cost for a CPA because there is no uniform level of work in different businesses and industries. Some businesses or individuals have simple tax returns which are easy to compile, while others their tax returns could take much longer to compute.
On the other hand, a good CPA will definitely cost you more on upfront payments. But the advantage of a good CPA is that it’ll payoff in the long run because good CPAs are thorough and comprehensive. A good CPA will treat your business as his own and delve deep into the financials to analyze it and identify tax saving opportunities as well as help you plan for the next year.
There are of course things that you can do to make sure that once you hire a CPA it’ll be affordable for you. These include:
• Building a relationship can help since your CPA would’ve become familiar with your financial situation and could therefore easily identify discrepancies and new changes.
• Do not make assumptions on the tax situation such as assuming the level of inflation, etc.
• Once you’ve established a relationship with your CPA, be sure to regularly consult her/him when you are making decisions that have impact on your financial and tax situation.
• Don’t lie to your CPA. Although some information may be private, sharing it with your CPA helps the CPA come up with accurate information that would save you from other penalties. It’ll also help the CPA deduce the best way to handle the current financial situation; either to claim the expense or report the earnings.
If you want to avoid the stress that comes with taxes, you need to work with someone who understands the tax law and that person is the CPA. One of these CPAs is Richard Klein, a premier Long Island CPA firm located in Plainview, NY. This will save you money, time and inconvenience.
In short, CPAs are innovative and strategic financial thinkers. They’ll help you develop an effective financial plan, handle tax planning and analyze your financial statements as well as help you understand complex financial transactions and other complicated decisions that need to be made.