Worthy reasons for which a small business may need to seek help of a CPA
One of the most vital parts of running a small business is to handle the finances and keep them in order. A single mistake on the part of the owner will spoil your budget and can also have harsh tax implications. No matter how wonderful and useful your service or product is and how well-qualified your employees are, your business can fall in trouble anytime. No one has seen undue emergencies and once they arise, you will find yourself in a mess.
Hiring a team of people who can work on your financial matters like applying for loans, filing taxes and financial planning for the long term is necessary. One such person is a CPA or a Certified Public Accountant. You may visit pstein.com to get the best CPAs who are based in Israel. Here are few things to know before hiring them.
Is there a difference between a CPA and an accountant?
You have to remember the fact that not all accountants are Certified Public Accountants. Once you qualify for a CPA, this is the only licensed qualification for accounting in America. For someone to become a CPA, the accountants require passing this exam. However, there might be additional requirements which might vary from one state to another. The applicants often require having a bachelor’s degree and at least 2 years of experience in the field of accounting.
A CPA has been pre-screened and it is taken for granted that he will be experienced and well-trained. They are usually given the more complex responsibilities like tax audits. The certification of a CPA can be renewed periodically and this depends on the state in which he is operating.
Does a business require a bookkeeper along with a CPA?
The answer is No but it is better to hire a CPA rather than a bookkeeper. For bookkeeping, you can utilize few software applications to do your own bookkeeping in the best possible way. There are software programs like QuickBooks Online or Xero or FreshBooks through which you can continue making financial decisions with the help of these details.
An accountant helps you set this software and hence if you’re someone who is just starting out, you’ll be benefitted with such insights and hiring a Certified Public Accountant is always a good bet.
Therefore, if you’re wondering about the different ways in which a CPA can help you, you can take into account the above listed information before hiring them.