Does a CPA REALLY Help You Save Money on Taxes?

Save Money on Taxes

The year crawls on, seasons change and that most dreaded of all seasons looms around the corner. Tax season! This can be a stressful time for any business owner. There are so many questions about taxes that need to be answered: Can I write this off? Should I get outside help? Who’s better suited to helping me save money on my taxes- an accountant or a CPA?

Our bookkeepers and accountants have the training and knowledge to help you and your business save money on your taxes. One thing we know for sure from years of working in the accounting world. While CPAs are useful, they don’t really help you save any more money on your taxes than what a normal accountant could do for you. Here are a few reasons why that’s true.

Related: Save Time on Accounting and Grow Your Business

Specialized service, specialized prices

CPAs are specialists in their field. They tend to focus on one area of financial expertise, which makes them great to utilize if you need help in that particular area. But that also means that they don’t necessarily excel at handling tasks outside that realm. So a CPA who is well versed in corporate strategy may not have more insight into tax law and deductions than an accountant.

Because CPAs specialize in specific areas of finance, it often costs more money to hire them than a regular accountant. And since getting your taxes done right can be a long process, you don’t want to be shelling out extra money for a professional who may not get you a higher return. You’re better off investing in a general accountant who has experience handling taxes for small businesses than to entrust your company’s financials to a big picture expert who’s not used to taking a magnifying glasses to the tiny details that can make or break your taxes.

Simplicity Vs. Complexity

You also have to ask yourself how complicated your taxes are going to be. If your taxes look like they’ll be relatively simple, seeking the services of a bookkeeper or an accountant to help you get them in order should do the trick. An accountant can amend and file your taxes just as well as a CPA and do it at a more affordable rate. If you have a larger business and are dealing with unusual legal red tape or complex accounts, you may have to see a CPA IF your accountant doesn’t already have the background and expertise to handle it themselves.

You may also need to see a CPA if you have to perform certain actions that a non-certified accountant can’t help you with. This includes obtaining a bank loan, bidding on a job or applying for a grant. But for any other tax or general financial issue your business has to deal with an accountant can handle it just as well as a CPA could, if not better!

Focus on the present, not the future

When it comes to taxes, seeing what you’ve done as a business and where you stand right now is critical. This is not a CPA’s strong suit. They gear themselves more towards financial strategy and advising. They’re looking to the future and analyzing shifting market trends. What they aren’t as good at doing is looking at your day to day operations and seeing what fat they can trim come tax season to lighten your load. An accountant, however, is perfectly suited for this role. They can get your business into fighting shape to take care of your taxes by focusing on the nuances and details that a CPA might miss.

Related: 3 Reasons CPAs Are Not Necessary for Small Business

Need Help With Your Taxes?

For more information about how accountants can help you save money on your taxes, call us at 602-375–5251.

Chris Hacker
Chris has been working in the bookkeeping and accounting field for over 15 years preparing business, income and payroll taxes. Chris has a bachelor’s degree from Arizona State and is an Enrolled Agent with the Internal Revenue Service.