Every business owner requires a team of people to take care of different sectors of his company. Those people are trusted with great responsibilities and can be the reason for a company’s downfall. There is an assigned person who is responsible for the company’s taxes and accounts called CPA.
Who is a CPA?
A CPA is known as the company’s Certified Public Accountant who works for the public accounting firms and takes care of important aspects like taxes and accounting of the firm. They are the trusted financial advisor who makes major decisions related to the profit of the company as they have a better knowledge about the tax codes.
What is the job of a CPA?
1. Perform Audits and Reviews –
- Certified public accountants are legally allowed to perform audits and reviews.
- This is something that a regular accountant can’t do.
- The law requires every public business to get an independent audit done. However, it is not necessary in the case of private businesses.
- Having a legal audit is beneficial as it secures your funding and loans, attracts investors, and eliminates any sort of fraud possible.
- A review has all the financial information in a formal manner and can be changed if required.
2. Tax preparation and filing –
- Since certified public accountants have a better knowledge of tax codes, the return of business taxes is handled by them.
- They are able to deal with complex business tax returns and file them systematically.
- Since they are reputed by the IRS, they can be the face of your company at the time of any disputes.
3. Tax and financial planning –
- The CPA helps you in reducing the burden of your business tax in the future by using their great knowledge of taxes.
- They use their tax planning strategies to lower the burden of taxes on your company.
- They also work towards reducing financial loss by coming up with better strategies for the same.
- They ensure the continuous and systematic flow of cash and prevent financial failures.
4. Defense and representation of your company –
- As mentioned earlier, the CPA is recognized by the IRS which is why they can represent you at the time of any legal disputes.
- Having a CPA prevents you from hiring an attorney at such a time as they are already enlightened with the knowledge of tax codes.
- They can present a strong and relevant case against them which a normal accountant wouldn’t have been able to do.
5. Forensic accounting to catch frauds –
- This simply means to investigate an account in case of any fraud, also called fraud auditing.
- They can catch any suspicious financial activity and embezzlement that could be taking place in secrecy.
- Some of the best tax accountant Pasadena CA are also certified for helping you out here.
These are some of the important benefits of hiring a certified public accountant for your company. They show great results and are extremely trusted. Do not hesitate before hiring a good CPA for your business.