Outsourcing or hiring experts may add to your income statement, but it can pay off. A survey by The Alternative Board states that most entrepreneurs spend nearly 70 percent of their time on mundane back-office tasks, such as bookkeeping. Smart business owners focus on their core talents and hire others to fill the gaps. Instead of wasting hours researching, planning and filing your taxes, you could put this effort into your business and generate more revenue. Here are 10 reasons why you should consider hiring a CPA.
Reason #1: Trusted Professionals Closely Regulated by CPA Canada
To become certified, an accountant must have work experience, pass the Uniform CPA Exam, and meet all state licensing requirements. The exam covers their knowledge of business, accounting, tax and auditing. Because of this certification, a CPA has a fiduciary responsibility to their clients, while an accountant does not. This means CPAs are legally required to act in the best interest of their clients, whereas a standard accountant does not have a license to lose.
Reason #2: Education and Experience
In order to become a trusted professional, a CPA need to go through extensive education and meet required experience levels. The education and experience a CPA retains helps them provide you with a qualified opinion on all accounting related issues. Often times, you do not have the education or experience a CPA has, making them a valuable asset to you. CPAs are required to take continuing education courses throughout their careers to stay up to date on laws and regulations.
Reason #3: Everchanging CRA Tax Laws
Since CPAs are required to take continuing education courses, they will be the first to know about new changes to the CRA tax laws. The CRA is constantly changing reporting requirements, tax rates and deductions. Having a CPA knowledgeable on the changes can allow you to be sure that you are getting the most tax deductions possible to save you money. Don’t worry about reading up on all the changes, leave that to your CPA!
Reason #4: CRA Letters
Another reason you should hire a CPA is to deal with CRA letters. The CRA can be stiff when it comes to fines and penalties, making it an area you don’t want to mess around with. A CPA can help sort out any type of tax matter or correspondence with the CRA to ensure you aren’t overpaying in fines and penalties. A CPA can also draft a response letter directly to the CRA using professional language to resolve the issues efficiently and effectively.
Reason #5: You are Self-Employed or Have Multiple Streams of Income
Self-employed income comes with certain taxes and regulations. Through the use of a CPA, you can rest assured that you are taking all the possible deductions and reporting your income correctly. The CRA can be ruthless when it comes to mistakes in reporting self-employed and other income. Avoid any CRA letters by having a CPA prepare the return documents for you.
Reason #6: Numbers Aren’t Your Thing
So, numbers aren’t your specialty? No worries! A CPA loves to work with numbers, taking the burden off you. A CPA can make sure everything is calculated correctly so you can focus on other important things in your life. Don’t waste your time trying to calculate a deduction or researching information. Leave that work to the CPA.
Reason #7: Save Time and Energy
Going along with not having strong number abilities, a CPA can save you time and energy, especially around tax-time. You don’t want to be scrambling last minute to meet tax deadlines. A CPA will help you stay on track with filings and save you the time and energy that goes into filing a return. Spend time with family or take a vacation and leave the nitty gritty work to a CPA.
Reason #8: Help with Big Changes
A CPA is well-versed in all things accounting, making them your qualified expert for big changes. Changes from starting a business to succession planning should be talked over with a professional to ensure everything is done properly. Mistakes in big changes can lead to costly fines and penalties, all of which can be avoided with the guidance of a CPA.
Reason #9: Money Saving Strategies
Who wouldn’t want to save money? I’m sure all of us would want to keep money in our pockets rather than paying it to the CRA. With the help of a CPA, you can find new tax saving strategies. From new deductions to personal tax planning, a CPA is your go to person for all things money saving. Their main goal is to help you, not drain your pockets.
Reason #10: Help Scale Your Business
A CPA can help you take your business to the next level. From cost saving strategies to revenue increasing ideas, a CPA can examine your business model and suggest improvements. Having a CPA on your side is critical, especially with the competitive market going on right now. Don’t wait until your business goes under to seek help.
Summary
Even if you complete your business taxes in-house, do you feel completely confident it’s correct? Were all available credits and deductions utilized? Are you prepared to defend your return if the CRA audits you? If you answered no to any of these questions, consider partnering up with a CPA to save you worry, time, and energy. Hiring a CPA can save you thousands of dollars in the long run. Are you ready to hire a CPA? Contact us today.