Whether you are a business owner or an individual taxpayer, having an experienced and trained accountant available to help you with your tax filing or to deal with IRS tax issues is vitally important. It can mean the difference between avoiding major tax problems and getting buried under them. However, making sure you know who to turn to for tax help is critical, as not all accountants are the same. There are big differences between public accounting firms and accounting firms, so read on to learn more.
Although there are many capable accounting firms that can help you with everything from small business accounting services to filing tax returns, it is often advisable to seek tax help from public accounting firms. Depending on the complexity of your tax and financial situation, there can be some solid advantages to choosing CPA services over ordinary tax and accounting services. When you need an experienced tax advocate, representation at IRS audits, or help with complex tax issues, the additional training and experience a CPA offers can make all the difference in solving your tax problems.
Surprisingly, in many states, anyone can refer to themselves as an “accountant” without having any special education, certification, or experience. That’s why it can be a risky thing to hire an accounting firm or tax accountant who has not taken and passed the rigorous Uniform CPA Exam. In order to be granted a CPA license by a state board of accounting, a CPA candidate must also earn a college degree in accounting, gain professional work experience in public accounting, and demonstrate high ethical standards. Unlike many accounting firms, public accounting firms are qualified to negotiate a IRS tax settlement, help clients obtain tax debt relief and prepare effective offers in compromise.
With experience in everything from business valuations and financial reports to wage garnishment release negotiation and IRS tax ties, CPA firms are often the type of tax adviser you can trust the most. In addition to meticulous tax return preparation and financial planning guidance, many CPA firms can provide valuable assistance in securing IRS installment agreements, penalty reduction, innocent spouse relief claims, and tax settlements. from the IRS. While there is no blanket guarantee that all CPAs are beyond reproach, CPA certification is usually an indication that you are receiving tax advice from a knowledgeable and meticulous professional.
If you are among the minority of taxpayers who do not own real estate, claim tax deductions, have investment income, or are ever facing tax problems of any kind, then it may not be necessary to hire a CPA. For example, a young single professional who has no dependents, assets, or deductible expenses can handle his or her own income tax preparation and planning without too much difficulty. However, as your career, business, or financial situation progresses, the services of a competent accounting firm or tax accountant often become an essential part of financial management.
When it comes to accounting professionals, understanding the difference between a public accounting firm and an accounting firm can ensure that you get the services you need for your specific situation.