Expert Q&A

Do I absolutely need a CPA to do my taxes for my small business?

What do CPAs bring to the table? Can I just try and do them on my own or will I miss vital deducations?


Related Topics: Bookkeeping, Tax Returns and Preparation, Taxes
Related Tags: CPA, Tax Planning, Bookkeeping, Business Owner, Business Owner
Dante T. Thompson
3 of 3 people found this helpful
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By Dante T. Thompson - The Benefit Center
Answered over 2 years ago

All responses are great, lets face it we have to allow the professionals to do what they do best. Know one knows TAX or Accounting Laws and Issues better than a CPA.

Lee Ciardella, CPA
2 of 2 people found this helpful
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By Lee Ciardella, CPA - Ciardella & Associates Ltd
Answered about 3 years ago

I am sorry but I disagree. You definitely need the services of a CPA. A CPA is the statutory title of qualified accountants in the United States who have passed the Uniform Certified Public Accountant Examination and have met additional state education and experience requirements for certification as a CPA and continued education requirements, very important. The can perform all types of accounting and income tax services from bookkeeping to certifying your financial statements. They can represent you in front of the IRS all the way to tax court. If you are looking to cut costs, CPA’s are not as expensive as most think. Actually non CPA are just as expensive if not more expensive. Let me ask you, would you hire a notary or an attorney. Have you noticed that all the “NO” answers were from non CPA’s

Robert Moore
1 of 3 people found this helpful
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By Robert Moore - Aaron's Accounting LLC
Answered about 3 years ago

I do not think you need a CPA. But I would suggest a professional tax preparer or an Enrolled Agent (EA). As Candy has mentioned, it depends on how complicated is your tax return.

JeFreda R. Brown
1 of 3 people found this helpful
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By JeFreda R. Brown - Brown Accounting Solutions, LLC
Answered about 3 years ago

No you do not. You just need to make sure to get some testimonials from people you know on accountants they may have used. It doesn’t necessarily have to be a CPA. As long as it is an accountant that knows tax law.

Mary A. Miles
1 of 3 people found this helpful
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By Mary A. Miles - MG Accounting and Tax Services, LLC
Answered about 3 years ago

It is not necessary to have a CPA prepare your small business tax return and not all CPA’s are devoted to taxes. What you need is a tax preparer that specializes in preparing returns for small businesses. I recommend a preparer that has a background in accounting also so that they will make the correct decisions based on whether your business is cash or accrual basis and they should be able to prepare a profit and loss statement. Do your research and some background checking before making your selections. It will indicate if they have the education and experience needed to do a good job on your return.

Candy  Yu
0 of 2 people found this helpful
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By Candy Yu - Avolon Accounting & Business Services
Answered about 3 years ago

I agree with George. You don’t need a CPA to perform tax return, however it is recommend that you at least get an enrolled agent to perform your tax return. However, it also depends on how complicated is your business tax return? Are you a corporation or just a contractor income?

In 2011, all tax preparer who are registered with IRS are required to be conducted a background check by IRS to ensure themselves do not have any tax issues. Anyone who does not meet this requirement will be denied to register with IRS.

Candy Yu

George Sleeman
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By George Sleeman - Tax Man To You, LLC
Answered about 3 years ago

I do not think you need a CPA. I think you need a professional tax preparer, but it is not just CPA’s who are that. EA (Enrolled Agents) are tested and certified by the IRS to do taxes.

You can do your own taxes also. However, as I tell my clients, you worry about making money, let me worry about keeping track of it.

I am not a mechanic. I can change my plugs and oil, those are easy. So is a simple return. I do not even want to try more complex job of changing the transmission, or doing a ring job. I have not been trained to do it, and I will have missing parts or extra parts when I am done. The same can be said for doing your own business taxes. You may miss some deductions, or you may take some that you are not allowed but did not know you could not.

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