For everyone that has thought that there are only 2 options to get the payroll processing done, behold for the third one. Yes, CPA can help with payroll processing apart from doing an in-house service or managed outsource service. Most of the startups cannot afford to bring managed payroll services nor have the skilled professionals to do the daunting taxes. For such firms, hiring a CPA is the best choice.
CPA?s are better than any accountant as they are professional, intelligent and more importantly they are eligible to do accounting and payroll processing. To begin with they took the course, studied hard and cleared the exams to gain a license to provide accounting services to the public.
Here are the 10 facts you should know about CPA payroll
1. Accurate payroll
Streamlining the payroll seems to be the ultimate benefit to attain accuracy. Accurate payroll helps in reducing the angry calls from employees and labor disputes, professional CPA uses the latest technology to get needed accuracy for payroll processing. Accuracy in payroll processing is necessary to retain trust and stay compliant with all regulations.
Instead of hiring a big outsourcing firm to do your payroll, hiring a CPA is a cost-saving move. Irrespective of the myth that hiring a CPA is a mostly move, the fact is that hiring them is not that expensive. It is quite inexpensive compared to the services they offer for the business. A CPA can handle payroll processing, tax filing, offer support during the audit and represent you during an audit. Since they stay informed of changing tax laws, they are very beneficial to work in tax filing.?
A CPA can foresee the path in which a business can grow steadily. Hiring a CPA is much inexpensive given the wealth of knowledge he brings to the business.
Hiring CPA payroll services is the smart choice as time equals money in the business world. It is a waste of time to let in-house employees do the payroll processing inefficiently when a CPA can complete the same work in lesser time. It gives sufficient time for the staff to concentrate on their core operations and help the business to grow. Filing taxes on your own takes time and effort. Hire a professional like CPA and let them handle the complicated process of payroll and taxes to retain profits.
4. Mitigate filing issues
There is a whole bunch of information on the internet on how to file for taxes but most of it is outdated or wrong. Having a CPA do your taxes is pretty much professional filing. It also helps you to file taxes properly without errors. Errors like non-compliance of tax laws and labor laws, shortfalls in cash, missing due dates end up with costly fines.
A professional like CPA keeps all such errors at bay beforehand and prepares the necessary files to be submitted for tax. Hiring a CPA is the right choice to save money, energy, and resources for your business for a long period.
5. Available throughout the year with practical knowledge
Everybody thinks CPA is available during the tax filing period but they are pretty much available all around the year to give information. They have deep insights on paychecks and how to plan for tax filing. Get strategic advice from a CPA if you are keen on avoiding paying more amount as tax.
Balancing finances is not an easy thing to do and not everyone knows how to handle finances well. CPA gives tactical advice on how to deal with company finances to ensure profit.
6. Improve recordkeeping or bookkeeping
Bookkeeping is the basis for calculating finances and most of them have no idea how to efficiently manage bookkeeping. For any firm that looks to mitigate taxes, the first thing they need to know is about bookkeeping. The organization of expenses and incomes should be recorded well to optimize bookkeeping. Surprisingly, a CPA can help you with some bookkeeping strategies to keep your records organized and secure. Having the records handy will make the process of tax filing easy during the tax season.
7. Maximize the tax deductions
Do you know that CPAs stay up-to-date about all tax laws governing a business? Dealing with taxes is the major part of their education and CPAs are equipped to handle any tax emergencies. Business owners may not know how to apply tax deductions but CPAs have complete knowledge on various business operations, income sources, and expenses which can be added to a tax deduction.
This knowledge is helpful to maximize deductions and minimize the amount paid as tax. All the deductions will eventually back in the form of refunds and small business owners are grateful for the reduction of the tax burden in this way.
8. Helps to make informed decisions
It is amazing how a CPA can become an integral part of your business expansion. CPA?s are qualified to make financial analysis about business organization and help you to make informed decisions. Detailed cash flow reports will provide you insights financial standing of your business.
9. Meets deadlines
Depending on the type of business you run there are varying deadlines, by which you need to submit reports to get IRS off your back. There are fines and penalties for late submissions. A CPA knows how to tackle all the different deadlines by automating tedious tasks. Having a CPA will keep you away from the last-minute rush.
10. Audit support
Do you have an accountant to do your payroll services? Well, think ahead before hiring an accountant as they do not come handy to represent you during audits. Handling an audit is a big burden on your shoulders and not a welcome responsibility many of them like to accept.
The biggest pro of working with a CPA is to get professional help in representing you during an IRS audit. They can also execute claims on behalf of you. They also streamline accounting and taxes to reduce the intense labor hours.
I?m currently working as a Charted Accountant with Payroll Outsourcing Company. I have a great passion for outsourced accounting services. In a previous couple of years, I have worked with big and small clients across numerous continents. I have a keen interest in outsourcing payroll processing, accounts payable outsourcing, BPO outsourcing, outsource finance, outsourcing accounts, outsource bookkeeping, offshore Back office services, etc.