Working with a professional accountant offers a number of benefits over working with a CPA or enrolled agent. One benefit is that the professional accountant will be experienced with tax laws. The accountant will also understand complex accounting concepts, including the cost of capital, profit, and loss, depreciation, and re-investment. Many accountants offer financing or mortgage services to corporations.
Another benefit is that a professional accountant can analyze a company’s financial records and provide advice to the Board of Directors on strategic decisions. An accountant can also prepare all of the required reports to the Board of Directors. They can also provide budget analysis, financial projections, and business plan guidance. A good accountant will have strong relationships with stakeholders within a company and the ability to communicate with management and employees. Their advice and recommendations can make a difference in the success or failure of a company.
One more benefit of hiring an accountant is that the accountant will work directly with the IRS. The accountant will compile and file all of the corporation’s financial records for tax purposes. The accountant will prepare and file an income tax return and assist with any necessary state tax filings. The accountant will even help the company secure its own tax lien status. This is beneficial if the company is structuring its operations to avoid paying taxes. It will also benefit a company that is in debt or has a past tax issue.
An accounting firm will also provide other benefits to corporations beyond just the actual services of a professional accountant. These firms will often provide financial planning services to corporations. This includes information on establishing cash resources. It also includes the calculation of cash flow, working capital options, and debt and equity financing options. They will help the company determine where it may be profitable to sell its assets, obtain refinancing or find a buyer for its stock. All of this valuable advice can save the corporation money and time.
For corporations, it is important to hire a professional accountant because of the importance of maintaining adequate bookkeeping. Accounting records keep track of the financial activities of the company, including sales, purchases, gross receipts, and net profits. Without proper record keeping, a company cannot calculate its true performance. A professional accountant can review the books of a company and provide any necessary guidance to the management. Many corporations hire a professional because the record-keeping requirements of the US GAAP (Generally Accepted Accounting Principles) are difficult to meet for a company of any size. Even a small company must have accurate records to meet the standards set by GAAP.
Another benefit to corporations is that they will find it easier to find an accountant who specializes in the area of their business. Most accountants can work with a variety of different industries. An accountant who is knowledgeable in finance can provide the necessary financial support that a large corporation requires. The accounting records that a professional accountant can provide a corporation can help it meet the various regulations that have been put into place to protect the interests of investors. An accountant can also be helpful in dealing with audits that a larger company might encounter.