If you are a small business owner, like many people, you may think you can’t afford to hire a Certified Public Accountant. What you may not realize is that money could be the smartest investment you could make. The United CPA Association can help you find the right CPA for you.
What You Don’t Know Can Come Back to Haunt You
If you have inventory, you should be on an accrual tax basis, not a cash basis. If you don’t report your income correctly, it could be considered fraud by the IRS and you could accrue interest, penalties or even worse, prison. Ignorance of the tax laws is no defense. In other words, you are legally responsible for things you do may even know about.
Smart Planning Can Save Thousands
Were you aware that there are standards around recognizing revenue? Many small business owners don’t. There are standards issued by the Financial Accounting Standards Board or FASB (pronounced Fazbee) that determine the correct way to record revenue. In fact, the most recent standard issued in 2018 also addresses expenses as well as assets and liabilities on the balance sheet.
With all the do-it-yourself books, websites and software programs out there, you may think you have everything under control. However, a CPA has undergone extensive education and training that could save you or your business. Hiring one could be the best way to save money.