Using a CPA
A certified public accountant ("CPA") can quickly become your best friend as it relates to starting and expanding a new business venture. Any business, regardless of its size, is required to fill out a number of forms each year that are specific for tax reporting, as well as general accounting. This includes tax returns, employee withholding income tax returns, sales tax returns, use tax returns, and other documents that are frequently requested by municipal governments, state governments, as well as the federal government.
These forms are extremely complicated and only someone who is qualified as an accountant can assist you in determining which reporting agencies you must submit documentation to on an ongoing basis. The penalties and fines for missing these types of deadlines can be substantial. As such, having a qualified certified public accountant ensures that your business will remain within the letter of the law at all times especially as it relates to tax filings.
One of the common debates within the
United States as it relates to ongoing government issues is tax reporting. Many people within the state legislatures as well as the federal government want to see simplified tax forms available given that it is a substantial administrative burden on all businesses. Most small business owners do struggle with having to spend a substantial amount of time filling out these forms and providing the necessary information to government agencies. A certified public accountant can be a major expense for any business, but they can also be an invaluable resource as it relates to making sure that these forms are filled out and submitted correctly and in a timely manner.
A certified public accountant can also assist as a relates to acting in a consulting capacity with your business. These individuals typically work with hundreds of small business clients and they can provide substantial insights in as to how your business can grow and expand. This is especially true for raising capital given that most certified public accountants work very closely with you when a bank or financial institution requires ongoing tax forms, profit and loss statements, balance sheets, and personal financial statements. Most certified public accountants operate in a dual capacity by not only providing outstanding advice relating to taxes but also as a small business advisor.
Many small businesses will quickly work with smaller CPA firms given their personal nature. As it relates to the cost of working with a certified public accountant, you can expect that a tax return for a corporation run anywhere from $500 to $1,000 per year. Depending on the complexity these fees may be higher or lower but for a standard size small business typically this is the normal range. Most of these accounts also have a billable hour rate of $150 to $250 depending on their expertise. However, it is somewhat unusual for certified public accountants to generate a substantial amount of the revenues from billable hour services.
During any type of tax dispute, a certified public accountant can also be an important resource given that they can often represent you as it relates to state government taxing agencies as well as the federal government. This type of dispute can be highly nerve-racking and a qualified CPA can ensure that this goes as smoothly as possible for you.
In closing, a certified public accountant is a great resource for any business that is looking to start or expand.