What can a CPA do for you other than your taxes and bookkeeping?

I’m looking to start a business and was hoping for some insight. With software tools like TurboTax, Taxcut, Quickbooks and all that, what other value and benefits can be derived from hiring a qualified CPA outside of doing my taxes and monthly bookkeeping? Thank you.

There are 2 things that a CPA can do for you that no other professional (or software) can.

1) In the event of an IRS Audit, only a JD (lawer), and EA (Enrolled Agent) or a CPA can represent you before the IRS. Other than those, you’re against the IRS yourself! However, the CPA probably knows the accounting (along w/ the tax) implications better than any of those 3.

2) The CPA is the only one who can sign (attest) to audited financial statements. Basically, they REALLY know accounting!

A good CPA can help with investment decisions, as there are tax implications that you probably are not aware of (and those softwares don’t do tax planning/strategies).

Hope that helps.

3 Responses

  1. hi91977 Says:
    August 27th, 2009 at 9:38 pm

    financial planning
    References :

  2. Brian G Says:
    August 27th, 2009 at 9:57 pm

    A CPA brings the knowledge of what all the tax and accounting laws are and how they may best work for you. The software you mention is great if you have the knowledge and don’t have a complicated business. Otherwise a CPA can help you with all of that. Some may also help you with financial planning for your business, and bank loans often require a certified financial statement which requires a CPA to sign off on them.
    References :

  3. Vocal Democrat Says:
    August 27th, 2009 at 10:29 pm

    There are 2 things that a CPA can do for you that no other professional (or software) can.

    1) In the event of an IRS Audit, only a JD (lawer), and EA (Enrolled Agent) or a CPA can represent you before the IRS. Other than those, you’re against the IRS yourself! However, the CPA probably knows the accounting (along w/ the tax) implications better than any of those 3.

    2) The CPA is the only one who can sign (attest) to audited financial statements. Basically, they REALLY know accounting!

    A good CPA can help with investment decisions, as there are tax implications that you probably are not aware of (and those softwares don’t do tax planning/strategies).

    Hope that helps.
    References :
    I’m a CPA/MBA

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Posted on August 27th, 2009 by admin and filed under CPA |

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