Choosing the Right Financial Professional for Your Small Business

💼An accountant and a bookkeeper can help you keep track of your business finances, organize your expenses, and reconcile your bank account.

📊CPAs (Certified Public Accountants) have a bachelor's degree in accounting, 150 hours of college credits, and have passed a licensing exam. They can perform audits, reviews, and compilations, as well as prepare your taxes.

📝Enrolled Agents (EAs) are enrolled to practice before the IRS. They specialize in taxes and can represent you before the IRS, deal with outstanding notices, and handle tax-related issues.

🎓CPAs and EAs must maintain a license by completing continuing education courses to stay updated on tax laws and regulations that may affect your business.

👥When choosing a financial professional, consider your specific needs and the level of expertise required. Don't just focus on the letters behind their name, but assess their qualifications and experience.

What services can an accountant provide for my small business?

—An accountant can help you with bookkeeping, reconciling bank accounts, preparing financial statements, and even filing your tax returns.

Do I need a CPA for my small business?

—It depends on the complexity of your business and the services you require. CPAs have a higher level of education and expertise, making them suitable for businesses that need audits, reviews, and tax planning.

What is the difference between a CPA and an EA?

—CPAs have a broader scope of knowledge and are licensed to perform audits, reviews, and compilations, in addition to tax-related services. EAs specialize in taxes and can represent you before the IRS.

Can an EA help me with my tax issues?

—Yes, EAs are enrolled to practice before the IRS and can handle tax-related issues, including outstanding notices and communication with the IRS on your behalf.

What should I consider when choosing a financial professional for my small business?

—Consider your specific needs, the level of expertise required, and the qualifications and experience of the financial professional. Don't just focus on the letters behind their name, but assess their ability to meet your business's unique needs.

00:00This video helps small business owners understand the differences between CPAs, EAs, and accountants, and how to choose the best financial professional for their business.

00:26An accountant and a bookkeeper can help with bookkeeping, reconciling bank accounts, and preparing financial statements.

01:36Enrolled Agents (EAs) specialize in taxes and can represent you before the IRS, dealing with outstanding notices and tax-related issues.

02:32CPAs have a higher level of education and expertise, making them suitable for businesses that need audits, reviews, and tax planning.

03:00CPAs and EAs must maintain a license by completing continuing education courses to stay updated on tax laws and regulations.

03:38When choosing a financial professional, consider your specific needs and the level of expertise required.

04:12Don't just focus on the letters behind their name, but assess their qualifications and experience.

05:19Make an informed decision based on what your business needs, rather than solely relying on the letters.