A chartered public accountant is crucial for the day to day running, audit, and also the tax related information collection of any business, both big and small. This is why you have to have an understanding of precisely why you will need a good cpa St. cloud, FL and how such an individual can help you run your business more smoothly than ever before.
However, it is possible for individual businesses, known as ‘sole proprietorships’ to get by without the active help and support of a duly qualified cpa St. cloud, FL. But that does not mean that even medium sized and large scale organizations, such as private and public limited companies (or corporations as they are known in the United States of America) can also do the same.
- What is a CPA?
A CPA or chattered public accountant is an accountant who has successfully passed a licensing examination in any state of the USA. In other countries, such accountants are also popularly referred to as “CAs” or chartered accountants. So, in a nutshell one can easily state that “all CPAs are accountants, but not all accountants are CPAs.”
As a matter of fact, there do exist many small businesses in Florida who routinely utilize the services of a professional accountant, and there are many otherwise highly competent non cpa accountants who can easily serve the need of small companies. This is due to the fact that for a very small business entity, any particular accountant may easily fill at least some of the accounting needs of the company, but there do exist certain highly specific circumstances in which utilizing the services of a cpa has certain distinct advantages.
In fact, tax accounting, by and large typically consists of a myriad different accounting methods and techniques that usually tend to focus on various taxation related issues rather than on concentrating in the setting up of the very crucial ‘public financial statements.’ Such statements are extremely important for public limited companies chiefly because as the very term implies a ‘public’ limited company invites the general public to buy its shares and thereby become co owners of the company (subject to the overall value of the shares so purchased by the shareholder).
While the individual shareholder’s liability will be limited only to the extent of the face value of the share he holds, nevertheless it is in all fairness a public trust and should the BOD (board of directors) of the company be involved in any malpractices such as fraud and the like, it is the job of the CPA to audit and unearth the same and in this way, help safeguard the public interest.
In many ways, the certified public accountants are the ‘guardians’ of the public trust and act to ensure that all SOPS (standard operational procedures) are being followed and companies and other smaller business entities are in full compliance of all existing rules and regulations at the local, state and federal level.
As your cpa St. cloud, FL will inform you, most public accounting at least in the US, is basically governed by various rules and laws created at both the federal as well as the state level and is consequently often overseen by the ‘Internal Revenue Code.’ This particular code specifically dictates the myriad different laws, rules and regulation that just about all public and private limited companies, firms and sole proprietors, needs must follow. This holds even more true when these business entities are preparing all of their taxation related returns so that they could pay their duly registered amounts of tax as mandated by the law. However, it is pertinent to note that many if not most, tax principles may often differ from the GAAP or generally accepted accounting principles.
- How can a CPA help with ‘Tax Returns’?
A tax return may be referred to as the tax form/s that are frequently used to report income and also file all the taxes that are due to a company, firm or sole proprietorship. These taxes have to be paid to the relevant tax authorities at the local, state, and federal level. The entire tax collection procedure is usually coordinated through the IRS or Internal Revenue Service in the case of the United States of America, while the same applies to different countries as well, each with their respective tax collection authorities, et el.
One of the most crucial services that a CPA can offer you is inform you about the ever changing tax landscape. Tax laws are subject to change and often without even a moment’s notice. If you are not prepared to handle the situation adequately enough, the odds are that you might fall behind in discharging your tax related liabilities. This in turn will mean that you might inadvertently end up being a defaulter. The tax man can also potentially see it as a clear cut case of ‘tax evasion.’ Under American law, tax evasion is actually a potent crime that can easily be prosecuted. Once convicted, the hapless business man can look forward to several unproductive years in prison as well as hefty fines. So, if you do not want a sudden involuntary change in address, a cpa St. cloud, FL may well be your very best bet. Apart from the above, there are very many other reasons due to which you might require the services of a cpa St. cloud, FL, in an urgent basis. Some of them include the following:
- An overall improvement in Credit Rating
An accountant can also easily help his or her client improve their credit ratings thereby leading to plenty of available credit on markedly lower interest rates and for longer time periods as well. This can help speed up the expansion of the business through the acquisition of capital assets as well as ensuing that the day to day running of operations is as smooth as ever it can be. The thing is that while simply paying bills and accounts payables on time, every time is a great way of keeping one’s credit score high. But nevertheless, it is certainly not the only way of doing so, per se. As a matter of fact, there do exist certain great stratagems that can also effectively speed up the whole process, so that you can apply for that coveted loan as soon as possible. The cpa St. cloud, FL would know all about these techniques and methods and ‘tricks of the trade’ and can help increase your overall score substantially in as short a time as possible. Thereby effectively enabling you to apply for your loan with complete confidence and peace of mind.
- Reducing your debt burden
The urge to keep up with the Johnses may well force many, if not most of us to take certain measures that we cannot afford. Such as buying that latest 3d 75 inch plasma TV or that latest smart phone that we neither need nor can afford or a sports car that is way beyond our budget or even fine dining, day in day out. Taken together, all of these ‘spend thrift’ options can lead us into a debt trap that we have simply no way of getting out of, on our own. As the bills pile up we find out that it is becoming ever more difficult to keep our heads above the water and soon paying interest rates is also becoming a major problem what to talk of paying back all of the principal amount as well. Till such time that even basic necessities such as schooling and groceries becomes difficult.
Getting out of debt when you are already so deeply dug in can be extremely challenging, to say the least. But knowing precisely how to manage it, while simultaneously negotiating with the long line of creditors, and also prevent the erstwhile debtor from being badly bullied by heartless financial institutions is exactly what a cpa St. cloud, FL is for. Let him help you ease your way back to a relatively debt free life.
- CPAs help you towards a world of financial freedom
There are a lot of people who are simply wizards at making money, whether it’s the stock market investments or being a real estate guru, some people are just plain ‘naturals’ at riding the waves of the different markets so that they can effectively make a killing. However, most of us are not born with such talents intrinsic to our financial acumen. This is where cpa St. cloud, FL comes into the picture since he or she will always be there to advise his or her clients on the best possible paths to complete financial freedom.
- Earning an amount that is higher than $ 200,000 per annum
If a person is able to earn more than $200,000 a year, then having a cpa St. cloud FL, to call on, is a really good idea indeed. According to very many financial experts, many top notch high earning and high worth individuals are far more likely to be audited then their less earning counterparts. So, if you really are one of the very lucky persons around who have the wherewithal to earn an amount in access of $200,000 then you would really want someone with a sound financial understanding and background on your side.
- Having multiple sources of income
If an individual has access to multiple sources of income, then it is imperative that he acquires the services of a cpa St. cloud FL. This is because he or she can easily help him or her sort through the bureaucratic red tape that is common amongst various taxation agencies in the US. A cpa will know and understand how to report everything correctly so that you will always have clean record with the tax authorities. It is an onerous enough task as it is, when you have only one source of income, but as the sources increase, so do the inevitable complications.
- For self-employed person
If you are self-employed or even in possession of your own business as a sole proprietor you can rest assured that a cpa St. cloud FL. can easily come up with various ways to help you with that too. As a matter of fact, hiring a duly qualified cpa would effectively mean that you have someone with all the relevant financial expertise and knowledge who can easily help you to find various ways to lower many of your taxes that you yourself might otherwise would have missed. The IRS has various relates and tax exemptions chimes for self-employed persons. You would definitely not want to miss out on those.
- Starting a new business
Much along the same lines as self-employed persons, if you are on the verge of starting your very own business then a cpa St. cloud FL has you covered. He will help you with all the financial aspects of running a new business and will also help ensure all the necessary paperwork and tax forms have been filled properly so that you get a running start when you actually launch your new venture as an entrepreneur.
In light of the above, we can easily see that the cpa St. cloud FL. is of seminal importance in ensuring that all of your due taxes are paid properly and you also have someone to fall back on to when you have multiple sources of income or are either self-employed or want so start your new business. In each and every aspect of your financial life, the cpa St. cloud FL will be there, to help you and guide you accordingly.