If you own a business, it’s natural that you’d have questions about the difference between a business CPA firm and a business tax service. Professional CPAs are well regarded for their prowess in tackling complex finance issues. On the other hand, the average tax firm can handle fundamental tax issues such as preparing your annual tax returns.
So, which one of these tax firms is the right one for you? Do I need a business CPA? The answer really depends on the particulars of your tax situation. If you just need your income and deductions organized, then a business tax service can adequately handle your needs. However, if your business requires added value knowledge, then you're better off with a CPA. Here are three reasons why.
1. The CPA Licensing Process is Rigorous
Business tax professionals don’t necessarily have the same broad educational background as a CPA. CPAs are required to have minimum education requirements plus have to pass a rigorous state licensing exam before being allowed to practice. In addition, CPAs have to take continuing education classes to maintain their licenses and stay updated on the latest tax code changes.
As a result, you’ll find CPAs have the expertise to provide superior tax services.
2. CPA Firms Offer Additional Business Tax Services
CPA firms generally have the resources and expertise to offer additional financial and tax services. From tax preparation and planning to bookkeeping and tax audits, professional CPA firms tend to provide the full suite of financial offerings required to grow a successful business.
Additionally, the lack of licensing tends to limit tax services in more intricate situations that may involve examination by the IRS or state tax authorities. CPAs have the standing to represent taxpayers before the IRS. They can also sign tax returns and represent their clients during audits.
3. You're Better Protected with a CPA Firm
Business tax firms are subject to minimal regulation. They mostly include non-licensed professionals that don’t answer to any regulatory agencies. With a CPA firm, you don’t have to worry about actions that could compromise your tax standing with the IRS.
Business CPAs are legally obligated to act in the best interests of their clients; it’s their fiduciary duty.
Do I Need A Business CPA?
Yes, every business, no matter the size, needs a tax advisor. CPAs wear many hats for businesses and can help you make more high-level financial and tax decisions. As a business owner, it can be hard to handle everything in-house. A CPA is a valuable resource that can take your business to the next level. If you're in need of professional tax expertise, contact us today!