Most people think that certified public accountants work with wealthy and large corporations. However, certified public accountants often offer financial assistance to people and businesses with varying incomes. Do all businesses need their services? Can your small business thrive with a bookkeeper? Yes, it's cost effective for some businesses to hire bookkeepers, but there are situations that warrant the services of certified public accountants, including the following.
Before Starting a Business
It's possible to start your business without consulting a certified public accountant. However, seeking the guidance of certified public accountants before starting your business may give you a better financial footing than if you were to do it alone.
These accountants can help you register your business and advise you on how to register it to ensure you have the right tax obligations. The accountants can also review your business plan and source of funding, and advise whether they are sound strategies.
When Preparing to File Tax Returns
Business taxes are complex, and most business owners often struggle to get the taxes right. It's no surprise that the IRS goes after such businesses. Consulting a certified public accountant can help you understand complex tax changes and their implications on your business. For example, you need to understand your tax obligations if you sell products to customers in different countries or states.
The same applies to business owners whose businesses began as hobbies and are considering growing them to fully-fledged businesses with employees and physical locations. Certified public accountants can help you determine how the IRS will classify your business.
When Earning From Different Sources
Most wealthy people have multiple sources of income as it helps spread the risk in case of anything. While this strategy is great, it also increases your tax obligations. It gets complicated if the income streams are spread over several states and countries.
Most of these states and countries may require you to pay taxes if you earn money in them. Seeking financial assistance from certified public accountants ensures you are compliant with the relevant tax requirements.
When Applying for Funding or Loans
Securing loans for your business is relatively easy if your business is growing, generating revenue, and has assets. However, not all loans are great for your business. Some loan options are high-risk and could affect your business. To avoid these debt traps, consult a certified public accountant. This ensures your business gets a line of credit that's beneficial and has favorable terms. Advisors like Colasanti & Iurato have more information.