8 Reasons You Are Losing Out by Not Using a CPA
1. Without using a professional, you will question if you are getting all the benefits of tax credits and deductions that are available to you. Many tax laws change near the end of the year (sometimes the beginning of the following year) with retroactive impact. Most good CPAs will go to a tax training session near the end of January or early February to get the latest information.
2. A good CPA will help you focus on profitability and where you should place your efforts. The CPA looks for a long-term relationship with you and will work to understand what your goals are and how you can be more efficient in spending your time on profitable lines of business
3. A good CPA will keep track of all the little things that need to be completed to keep your business current. They will advise you of due dates and the need to complete these forms. We all get plenty of information that we look at and set aside. Certain of those items are important. A good CPA will advise you whether to put the form in the trash or to complete it so it doesn’t negatively impact your business.
4. Are you avoiding unnecessary penalties by filing all returns timely? Most CPAs track due dates for their clients and automatically prepare extensions when information is not available. They will generally contact you and make a best guess estimate of what tax is due. They realize that an extension is an extension of time to complete the return - not an extension of time to pay the tax.
5. Are you being informed of changes that may impact your business or industry? Since a CPA is looking for a long-term relationship, they generally communicate with their clients to advise them of changes in tax laws that could change the way you do business. If there is additional cost to you, you need to know before it happens so you can include these additional costs in your quotations. A good CPA will advise you of these types of changes.
6. Is your tax return (personal or business) being prepared on a “box software”. Most good CPAs use a professional software that understands the tax laws and generally advise the preparer of possible alternative tax treatments that can save you money. Many times, these suggestions include possible additional questions we need to ask you in order to make certain that your return is complete and accurate. A perfect example is when your children reach 18 years old. Are they still a dependent?
7. Is your personal information secure and confidential? CPAs are licensed by the state they practice within. They don’t generally operate out of department stores. A CPA can be sanctioned by their State Board of Accountancy or the American Institute of CPAs if they aren’t acting in an ethical/professional manner. Non-CPAs are not being bound by the same rules by these oversight authorities.
8. After April 15th can you contact your preparer? Many non-CPA firm entities are only open between January and April with limited or no access to the person who prepared your return. Why is this important? If you should get a tax notice from the IRS or State, who best understands the preparation of your return? A CPA firm is generally open for business 12 months during the year and available to assist you in handling tax notices.
If you’d like additional information on any of the topics listed above, please contact Marie A. Jakubiak, CPA @ jakubiak1@aol.com and visit the company website at http://www.majapc.com for even more valuable information.
