Business

Reasons why a small business may require taking resort of a CPA

Regardless of whether a business is big or small, it will need the help of a tax advisor or a financial expert. Then there are CPAs or Certified Public Accountants who are licensed and trustworthy professionals who can help a business in reaching its financial goals. If you’re a business in Israel, you may seek help of pstein.com as they have the best licensed and accredited tax professionals and CPAs in Israel who can assist your business in the best possible manner.

So, if you have to maintain the accurate financial records of your company, what should you do in order to ensure accuracy? Should you hire a CPA or an accountant? Read on to know more on this.

Who is better – CPA or Accountant?

If you consider the term ‘accountant’ this is a general term which refers to all the tax and finance professionals who are bound to follow certain regulations like the GAAP or the Generally Accepted Accounting Principles which are usually set forth by FASB or the Financial Accounting Standards Board. On the other hand, if you consider CPAs, they have passed a state license examination and hence it can be said that all CPAs are accountants but the vice versa is not always true. For a business that’s very small, an accountant can fulfill all sorts of needs but for a bigger business, it is better to hire a CPA. Here are few reasons to get help of a CPA.

TAX LAWS

All CPAs will not have the specialization in dealing with small business taxes but most of them are familiar and acquainted with the tax law changes, at least more than the accountants. When it comes to the task of a CPA, he should have a thorough knowledge on the tax codes. They have to write a lot on the current tax codes when they sit for the licensing exams and hence it is expected that they will have enough knowledge. The IRS needs all the tax preparers to have a TIN (tax identification number) so that they can be distinguished as enrolled agents and preparers.

IRS AUDITS

This is probably the biggest possible reason to seek help of a CPA as he is able to represent the business in case there is an IRS audit. As mentioned above, all accountants are not CPAs and hence they won’t be able to represent you. In case you’re paying to hire a professional, you should hire a CPA who can represent you in an audit.

Therefore, whenever you’re eager to take good care of the finances of your business, you should try to hire a CPA for the above listed reasons.