As January approaches, end of the year financials are rolling out and tax season is closer than ever. This is the time of year accountants and CPAs are talked about again and again. CPAs can be very rumernative to your business and help with long-term success.
What is a CPA?
A CPA is Certified Public Accountant. All CPAs are accountants but not all accountants are CPAs. This is because becoming a CPA requires a license. (This license is achieved with a bachelor’s degree with a concentration in accounting. Other specifics change state to state.) About 50% of accountants are CPAs. Having a CPA alongside an accountant is beneficial because they can work together to help with monthly reporting and of year taxes to get the best financial influence for your business
Why have a CPA?
CPAs are typically more expensive than accountants so many businesses often require regular accountants help on a more regular basis. Accountants & CPAs can do a lot of similar things but there are some things that only CPAs are allowed to do. Only CPAs can prepare audited financials and represent clients in front of the IRS. Also, only CPAs can file reports with the Securities and Exchange Committee (SEC). Regular accountants often have more of a direct influence in a business as they typically monitor the client’s company reporting and help companies see the bigger picture through their financials. They do this (often with the help of bookkeepers) by coding and recording transactions as well as managing accounts payable/receivable. Although CPAs have this capability as well, CPAs are often hired to work with and handle yearly taxes since they are better tax experts.
Working with a CPA – Brandon Johnson, CPA
Having a consistent and personal CPA can be extremely beneficial to your business long term. Brandon Johnson, CPA is a CPA that does tax preparation and tax reduction planning for small business owners and self-employed individuals. It’s important to find the right accountant & CPA for you. Different accountants/firms specialize in different areas and price does not equate to best fit. Having the wrong services can cost you; often in the form of overpaying taxes. Furthermore, waiting until the end of the year is not useful in reducing your tax bill. Planning ahead is vital to making a real impact in your finances. “I am focused on small business owners and position myself to be proactive in my services instead of reactive. This is done through tax planning services where we project how much tax the business owner is expected to owe at the end of the year, and we brainstorm tax strategies to implement in order to reduce that tax. These services also include ongoing support through the year, a QuickBooks reviews, and help dealing with the IRS.” says Brandon Johnson. Brandon loves that he gets to advise and build relationships with clients instead of simply just crunching numbers. Knowing he can find different strategies for reducing taxes and bringing in more cash flows for his clients gives him a sense of purpose because this allows clients to stay in business & take care of themselves and their family. Having a CPA like this is valuable to the longevity of your business.
Significance of CPAs
CPAs play an important role in the world of business. They have an immense amount of knowledge and benefits that other financial advisors can’t help with. As the next year begins, remember to keep in mind the importance of a CPA!
