No matter how small or big a business is, it needs a tax and financial advisor. If you have a business in Israel, your business will need this tax advisor for US citizens in Israel, and not just someone who is an accountant. In case you’re bootstrapping your small business or you’re beginning with a limited budget, you have to figure out how you can cut down costs and do more to stretch your available funds as much as possible.
In case you lack experience in handling the books of a business and you expect that you can learn on the go, you need to think twice. Here is a list of the ways in which a CPA will help a small business owner.
CPAs are licensed but accountants aren’t
A CPA is licensed by the state and he remains current with the tax laws to maintain a license in the state. On the other hand, accountants aren’t licensed and the CPA exam is a tough process which continues for several days. Once they gain their license, CPAs should even comply with their ongoing educational requirements to maintain the licenses; accountants usually don’t have such a requirement.
CPAs are well-versed with tax laws
No, all CPAs don’t specialize in small business taxes; they are well-versed with tax laws which the accountants aren’t. One of the biggest parts of the licensing exam of a CPA is knowledge of the tax code. There are many CPAs who keep track of the changes that are being brought to the Tax Code. An accountant can prepare and sign on the tax returns but the designation of an accountant won’t provide assurance of certification.
CPAs involve in financial analysis
The bookkeepers usually perform the routine tasks of inputting records of business income and expenses into the financial software program. Accountants review this input and analyze and prepare the financial reports. CPAs are involved in thorough analysis and they advise on financial and tax matters.
CPAs can handle an audit
This is probably the biggest reason for hiring a CPA for handling your business taxes. The CPS will be eligible to represent you in front of the IRS in case of an audit. The accountant can’t do this. The accountants who aren’t CPAs not only represent clients in a restrained manner but also prepare your taxes.
Therefore, now that you know how a CPA helps a small or a large business, you can hire one but make sure he has your best interests in mind.