Over the course of Heath Hendrickson’s career as a CPA, his firm’s services have been requested by small businesses for a wide variety of reasons. The expertise that CPAs lend to small businesses has proven valuable, as it gives administration the breathing room to handle several situations that would otherwise take up valuable time and energy. Here, Heath Hendrickson of Caledonia, NY includes a short list of common reasons CPAs are hired by small businesses.
Prevention of Filing Issues
When it comes to filing taxes for small businesses, there are many resources out there that assist with the ins- and outs of tax preparation. Still, Heath Hendrickson of Caledonia, NY notes that not all these resources are fully helpful for each case. For example, some of the resources for filing that are available online include misleading information or facts that reference currently outdated tax law. A CPA can help prevent misfiling issues by lending their expertise on tax law and guidelines, especially those that may have changed very recently.
IRS Audit Representation
Audits can be an arduous and complicated process for individuals that are not tax professionals. One of the inherent benefits of hiring a CPA is that they can represent your business if it is audited, which can be an immense help for undergoing the process smoothly. CPAs can be trusted to execute claims on behalf of the business and can ensure that records, pertinent information, and supplementary materials to substantiate items reported on tax returns make their way to the IRS.
In-Depth Financial Analysis
One of the largest benefits to hiring a CPA is that they can perform detailed financial analysis for your organization. CPAs can monitor your total business assets, analyze financial reports, and provide a complete picture of your business’s current financial standing. Improving recordkeeping is a crucial step in assisting businesses with processes such as increasing business tax deductions. To this point, CPAs focus on a safe, accessible, and organized approach to record keeping strategy. Heath Hendrickson acknowledges that CPAs are also in the unique position to offer important financial advice that can be used for future development.
Tax Deduction Maximization
Many small business owners are surprised to learn that there are plenty of ways to legitimately minimize taxes they are not currently utilizing. Heath Hendrickson of Caledonia, NY recognizes that, by maximizing tax deductions and credits, CPAs can save businesses money that can instead invest in their upward trajectory. To do so, CPAs will typically evaluate the specific financial situation of the business and tailor a recommendation to lower tax liability for the current year, maximize savings from allowable deductions, and take advantage of tax credits that are available.
