Why Do Small Businesses Need a CPA?
No matter how big or small, every business needs a tax and financial advisor to ensure that they have their bases covered. Not just any accountant will do, however - your business needs a Certified Public Accountant (CPA).
What’s the difference between a CPA and an accountant?
Accountants are a general classification for tax and financial professionals that follow the standards and rules set by the Financial Accounting Standards Board (FASB). CPAs, on the other hand, are accountants who have passed a certain licensing examination that differs from state to state. Professionals like Joseph Gormley, CPA have a number of advantages when compared to accountants when it comes to small businesses.
Tax Law Expertise
Although not every CPA may focus on small business taxes, almost every CPA has a better working knowledge of tax laws than most accountants. Tax code expertise is central to the licensing exam each CPA must take and many continue to take tax courses every year to ensure that their knowledge is current.
The CPA Licensure
The CPA exam is a grueling process that takes place over several days that covers a tremendous number of facets concerning tax and financial knowledge. Even after they become licensed, CPAs must continue to fulfill certain requirements regarding their financial and tax education to retain their license.
IRS Audit Representation
Perhaps the most significant difference between an accountant and a CPA is that a CPA can represent you in an IRS audit where accountants can not. If a professional is to do your tax preparation, it is incredibly handy for them to be able to have full authority in an audit and execute claims on your behalf.