Your business is growing, your tax return is getting increasingly complicated, or maybe you’re doing business across several state lines. Whatever the reason, you might be wondering if NOW is the time to hire a CPA- a person who has been certified by their local municipality to perform accounting and tax functions for the general public.
But how do you know for sure if you need a CPA? What kind of CPA should you hire? Where would you even find a CPA? Relax- we’ll be directly addressing these questions (and more) in this post.
How do I Know if I need a CPA?
FACT- Your clients are better off hiring you than trying to maintain their properties themselves because you have the requisite skillset to get the job done right, on time, and on budget. FACT- finance, tax, and accounting specialists are no different.
That said, for most taxpayers, filing taxes is easy. If you only have a single W-2, then filing is almost automatic when you use TurboTax, H&R Block, or any of the other more than capable DIY software platforms.
But if you’re reading this then your taxes are most likely not that simple. But what does “not that simple” really mean? From our perspective, here are the top 10 reasons (in no particular order) why your taxes may no longer be considered simple and you might want to consult a CPA:
- You currently hire, or plan to hire employees or contractors
- You pay your workers as independent contractors
- You perform services across state lines or sell products in several different states
- You do business overseas
- You offer multiple products or services in your business (e.g. you mowing, sodding, etc.)
- You want to open a retirement account for you or your employees
- You plan on selling all or part of your business
- You want to change your business entity or you want to know which corporate structure is right for you
- You haven’t filed taxes in one or more prior years
- Your revenue (and hence your tax liability) is greater vs. prior years
If any of these describe your business then you may want to consult a CPA sooner rather than later.
What Kind of CPA Should I Use?
Now that you’ve determined that you need a CPA, next you need to determine what type of CPA you should use. Believe it or not, not all CPAs are the same or even offer the same services. In fact some CPAs don’t even prepare tax returns. But choosing the right CPA doesn’t have to be rocket science.
Our best advice- if you’re in a specific trade or industry, find a CPA in your area who handles a lot of clients that are just like you. For landscapers, you want a CPA who knows and understands the tax and accounting needs that are typical in the landscaping industry- such as fuel tax credits, landscaping business tax deductions, etc. This will ensure you’re not only staying compliant but are also cashing in on all possible tax credits and deductions available in your industry.
How Do I Find a CPA?
Now that you know you need a CPA and you have a good idea of the type of CPA that you want to consult with, it’s time to select a service provider. Finding the right CPA today is actually easier than ever- there are many valuable resources on-line that describe CPAs in your area that service your industry. In parallel we also recommend you also ask other folks who you trust, who own or operate a business like yours, who they use to service their tax and accounting needs.
Keep in mind this is not a function you want to leave to the lowest cost provider. We recommend you choose a CPA who embraces technology, is writing articles for trade journals and online publications that matter to you, and who is well known in your industry.
Your CPA should be more than a tax preparer or bookkeeper- they should be a trusted advisor. They should not only keep you up-to-date on the latest tax issues, but also help you automate your bookkeeping and transform your practice to increase your bottom line.
Wrap Up
So that’s it. Hopefully it’s now clear exactly what you need to do. But if there’s still some doubt, why not go through the process above, select you top three vendors, and ask them your toughest tax and accounting questions. Worst case- you’ll get free tax advice. Best case- you’ll be able to judge from their answers not only if they’re qualified to help you but also if you even need their help this year at all.
