Unraveling the Essentials: Hiring a CPA for Your Business

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The businesses in Shelby County have to pay various local, state, and federal taxes. While the big companies in the city are able to hire a dedicated workforce to look after their taxes, startups and small businesses have a hard time figuring out applicable taxes and ways to save taxes.

That’s where Shelby County, Alabama professional tax services can prove to be handy. Businesses can hire their services as and when needed to prepare and file taxes and ensure compliance with tax laws and regulations.

Who can prepare taxes for a business?

While the federal government doesn’t require people to hold a license to become a tax preparer, hiring a professional to prepare your business taxes is wiser. Here are some professionals who can do this job for your business:

  • An enrolled agent: An enrolled agent holds a federal license issued by the IRS to represent, advise, and prepare taxes for people and companies.
  • A Tax attorney: A tax attorney possesses expertise in tax preparation services and can also represent their client before the IRS and civil and criminal court.
  • A Certified Public Accountant: A Certified Public Accountant or CPA is a professional who goes through rigorous educational and training programs to gain proficiency in various accounting disciplines, including taxation, accounting, auditing, and much more.

Understanding how a CPA can help you with taxes

A CPA has to complete a minimum of 150 hours of coursework in college to attain eligibility to appear in the Uniform CPA exam. Not only can a CPA prepare taxes for your business, but they can also provide you with expert advice on how to maximize your tax savings while also being compliant. 

Nonetheless, here are some main tasks a CPA can perform:

  • Tax preparation and filing 
  • Financial consulting, planning, and reporting
  • Preparing various financial documents
  • Auditing and regulation compliance
  • Forensic Accounting

Things to consider when hiring a CPA for your business

While CPAs can perform a wide variety of tasks, ensuring the following can allow you to make an informed decision when hiring a CPA:

  • CPAs excel in tax preparation, accounting, auditing, forensic accounting, and much more. Make sure you hire a CPA with a specialization in business taxes.
  • Ensure the CPA you hire is registered with the IRS and holds a Preparer Tax Identification Number (PTIN).
  • States require CPAs to get licenses, so when hiring one, make sure to check the validity of the license, suspension, or disciplinary actions with the state’s board of accountancy.
  • Make sure to gauge their experience. A CPA with adequate experience could give you better insights and advice.
  • Make sure their fees fit in your budget.
  • Ensure that they can e-file your return, provide audit defense, sign your tax return, and represent you before the IRS if needed.

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