2. Why Do You Need The Services
Offered By Certified Public
Accountants (CPA)
3. Taking decisions related to financial matters, such as
planning taxes and retirement can often be a difficult
task for ordinary citizens and even large corporate
bodies. You may not have direct access to sufficient
information regarding these matters. You may also
sometimes not have access to the right information.
This leads to several people often making the wrong
decisions, which may prove injurious to their
finances.
Fortunately, using the services offered by a Certified
Public Accountant (CPA) may save you all this
trouble. A qualified CPA has ready access to all the
information that you need, and will provide you with
what is known as an assurance service. This means,
you will be provided with all the latest and most up-
to-date information to help you make informed
decisions. Some of the services provided by a CPA
include:
4. Tax Preparation Services
Given how complex income tax laws are in the United
States, it is always advisable to consult a CPA to assist
you in preparing your tax returns. Both individuals
and corporate entities are entitled to use a CPA
service. If you are an individual, then you will be
required to file your personal tax returns by April 15
following your previous tax year (this can be extended
to October 15 of the year). You will also be required to
complete a tax organizer booklet. This must be
accompanied by a signed letter which authorizes the
firm to prepare your returns, and a deposit charged by
the CPA. Please remember that by signing the letter,
your CPA understands that all returns have been
prepared based on the documents provided to
him/her by you.
5. In case you own a business entity, then the due date
may be fixed at the 15th of any month in that year, or
else it may also be required to file by April 15th of that
year. The due date for businesses could also be
extended to September 15th of that year. To prepare
your returns, you will need to provide your CPA with
all books and records from the accounting period of
the financial year. This could be easier if you have
access to software, which helps you generate a
summary of your accounts. During the preparation of
your returns, a few adjustments may be made by your
CPA to the information provided by you. In the final
tax return, all such adjustments will be accounted for.
You must provide your CPA with the requisite deposit
and a signed letter of the services that you have
requested.
6. Tax Representation Services
Tax representation is useful to those clients who have
received a notice from a tax agency that either they or their
corporate body is going to be audited. As you may not have
the necessary knowledge to help you prepare for an audit, a
hired CPA will be able to guide you through the process well.
The CPA will serve as the point of contact between you and
the auditor. He/she will first meet with you to thoroughly
review and validate your tax returns, as also to compare it
with the supporting data. Even if you do not have all the
required documents, the CPA will still be able to start the
audit and have all other documents provided at later dates.
Apart from the initial meeting between you, your CPA and
the auditor, all other communications may be carried out
through e-mail, fax or phone (unless the auditor wishes to
hold subsequent face-to-face meetings). A letter is provided
to you by the CPA about the services requested, the
documents you will need to provide to complete the audit
and the fees charged.
7. Estate Planning
Estates represent the sum total of all your assets
accumulated during your lifetime. It is important to plan
and arrange your estates in order to determine which party
will lay claim to them after your demise. Proper planning
also raises the value of the estates by reducing the amount
of taxes on them. Estate planning is usually carried out with
trusts or wills, but will also include beneficiary designations
and tenancy rights. By hiring a CPA to help you plan your
estates, you will be in a better position to create a living will.
This will ensure that your designated beneficiaries are the
sole owners of the property after your death. The planning
ensures the arrangements for burial or cremation, and may
also in some cases cover the winding up of business.
8. Retirement Planning
Retirement planning ensures that at the end of your active
working life, you have sufficient funds available to live
comfortably. Careful planning and wise investments will
certainly maximise the amount of capital that you will
accumulate at the time of your retirement. To help you
better do this, a qualified CPA will give you a financial plan.
This will include a choice of financial instruments (such as
stocks, shares and mutual funds) which will give you the
highest possible returns. By opting for such a plan, you will
also be well informed about retirement benefits, social
security, pensions and insurance. This will help you to
maximize your finances to become financially independent.
9. Whether you are an individual or business entity, a CPA
service is your best bet to financial success. Not only do they
help you prepare your tax files and audits, but also help you
plan and manage your finances. A CPA should be your first
port of call for any information related to your taxes or
retirement plans. Obtaining a CPA service will ensure that
all the information you possess is true and genuine, and this
will serve your interest in the best possible way.
