Why You Need A CPA for Your Home Business - Even If You Think You Don't

Home business owners are a unique group of people

. They're the mavericks of the world, the ones with big ideas and the desires to make a difference in the world with that big idea. They have the know-how to get the job done, and the savvy to do it in a cost-efficient manner. Many, also, will attest to necessary expenses. Business owners simply cannot avoid some expenses. For example, all businesses need electricity. They must pay for the production of whatever they sell. And they must pay taxes. While every home business owner will agree that every business must pay taxes, not all agree on how to go about that process. Some believe they can save money by filing their own taxes. But the smart home business owner, the savvy ones that know how to cut the right kind of corners, understand the value of a CPA.

A good CPA will understand proper itemization. Did you know that you can deduct for your home office space? Do you know how to do that? A qualified CPA will understand what you can or cannot deduct on your tax forms. The CPA will also understand the necessary formula for figuring out how to deduct percentages. For example, let's say that your house is 100 square feet, and your house is a 2200-square foot building. The CPA will understand how to not only figure the percentage you use for office space, but he will understand how to file this properly and thus avoid you an audit in the future.

Secondly, good CPAs understand tax laws. How many of you studied tax laws in college? Even those with a good business degree from a prestigious university cannot keep up with the newest tax laws on the books. CPA receive their certification (the "C" in "CPA") because they know those laws. They not only can save you money with those laws, but they will keep you legal, and again, keep an audit at bay.

Finally, a good CPA will give sound advice. CPAs do more than just file taxes for home business owners. They give sage advice based on years of experience in watching other business owners do business. They will let you know how the changes you have in mind for your business will affect the business financially based on both the numbers in front of them and the experience they have with other business owners.

Finding a good CPA may take a bit of research. Talk to other small business or home business owners, and find out who they use for a CPA. Ask them what they like or do not like about their particular accountant. Make sure you select a CPA that has extensive experience in working with home business owners. Every CPA has a similar education, but their client-based experience will help define them as a great CPA for a particular client. That's why, for example, farmers will go to a CPA that deals primarily with clients in agriculture. Large businesses all use the same CPA because that particular CPA's experience has led him to understand how large businesses work. Thus you must fin da CPA that understands your type of business.

CPAs can and will save you money. Stay away from the accountant-in-a-box theory when tax season rolls around, and before you know it, you will find yourself in the office of a business-savvy advisor.

Why You Need A CPA for Your Home Business - Even If You Think You Don't

By: Janice Sherwood

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