Running a small business in Phoenix often involves tackling frequent challenges. As the owner, there are certain things you can manage on your own, but when it comes to tax planning, tax preparation, and preparing financial statements, you need an expert on your side. You may come across CPAs and accountants who promise assured customized support for new & growing businesses. Should you consider outsourcing small business bookkeeping in Phoenix? Should you hire a CPA over an accountant? Or is it necessary to have an in-house team? In this post, we are sharing answers to these questions.
CPAs are not the same as accountants
CPAs – or Certified Public Accountants – are involved in the preparation of financial statements and tax returns. They must fulfill licensing requirements to work as a CPA in Arizona and have to complete comprehensive training and pass an exam. In comparison, accountants typically have a degree in finance or accounting. Accountants may know the rules and regulations, but they don’t have the same level of expertise.
CPAs can do a lot more
While tax planning & preparation is often the first reason for hiring CPAs, these professionals do a lot more, especially for small businesses. If yours is a new company with limited volume of data, it won’t make much sense to have an in-house team of financial advisors and tax experts. When you hire CPAs, they can help with various things, including financial analysis and business budgeting. CPAs can also help you maximize your tax benefits and prevent errors that can impact your business. Not to forget, your CPA is in charge of ensuring that your business is in sync with the laws and compliance requirements and doesn’t run into trouble with the IRS. If you are facing a tax audit or need representation before the IRS, they can help with that too.
Relevant industry expertise matters
If you are working with CPAs for the first time, we would recommend that you do your homework before choosing a firm. In Phoenix, you can find firms that specialize in specific industries. For instance, if your company is in the food processing sector, the compliance requirements would be very different from a trucking business. Find a local and reliable CPA firm that you can rely on for assistance. Also, ask them if they can help install and manage a bookkeeping software solution to automate some of your regular tasks.
Don’t delay hiring a CPA for your business. It may change the way you see your finances and taxes.