It may not be a surprise to find out that even the smallest business should have someone who acts as a tax and finance advisor. However, it’s worth understanding that you need a Certified Public Accountant and not just someone with the designation of “accountant.”
Why is that? We’ll explain a few reasons below.
One reason is because a CPA is licensed by a state while an account is not. CPAs are required to keep up with new laws to keep their license. In order to become a CPA, an accountant must take a grueling exam that takes place over many days and covers the many aspects of tax and finance expertise.
CPAs must also continue their education over time to keep their license, while an accountant doesn’t have to do this.
In addition to this, CPAs are all familiar with tax laws to a greater extent than accounts. The exam they take requires a great knowledge of tax code, and many CPAs take courses each year to learn new happenings. While an accountant may be capable of preparing tax returns, you don’t have that same assurance that a CPA brings you.
On top of that reason, CPAs are also capable of financial analysis that is important for a business owner. They can advise you on financial matters and do detailed analysis. Of course, not every CPA is going to offer the same level of advice, but the designation of CPA does make them stand out for a traditional accountant who hasn’t passed the CPA exam.
What it all boils down to is that a CPA can provide everything an account does while also offering additional services. They can analyze your work, support you in an audit, help with business decisions, and also do the more routine work accountants often do.
The best thing you can do is find a CPA firm that offers bookkeepers and accountants. The typical bookkeeping work can be done by the person who is trained for it, while the more complicated work can be taken on by the CPA. This gives you the best of both worlds and prevents you from overspending in the process.
OnTarget CPA in Indianapolis provides skilled CPAs and bookkeepers who are well-educated on small business needs. Their prices are competitive, and their work is top notch. If you are looking for a firm that can work for you, call their office at 317-536-3104 with any questions you might have.
