Who are required to hire a Certified Public Accountant(CPA) and when it is needed to hire a CPA ? Is the question that many entrepreneurs and traders running Small and Individual businesses ask us. Furthermore here we clearly explain it to you on the reasons and need for hiring a professional CPA for tax preparation and book keeping of your small business cpa phoenix with respect to both legal and Business stand point.
Suffice it to say that the obligation to hire a certified public accountant is more a need for the company to provide financial information that is useful to its stakeholders, than a legal obligation. By law, all companies are required to hire a certified public accountant; only those that the law requires them to have a tax inspector , and those that the tax law were forced to sign their tax returns by public accountant , which are usually large companies.
Small businesses, small traders, although they are required to maintain accounting records are not required by law to hire a certified public accountant. In some cases, not legal but commercial requirements, the employer must submit signed financial statements or audited by public accountant, in which case you can temporarily hire a certified public accountant, who will review the accounting and then sign, certify or dictate the financial statements, as applicable.
In any case, and by law there is no obligation to have a public accountant, is important and have it be part-time or casual, since it is always advisable to be properly managed accounting and financial information, which can not be guaranteed if not it has the advice of the public accountant.
Moreover, we must not forget that for accounting serve as evidence to the merchant, it must comply with all legal requirements, so long as it is required to carry accounting , it is advisable to have the advice of a certified public accountant.
Some individuals are obliged to have or hire a certified public accountant, especially to meet certain tax obligations. According to the commercial code, every merchant is required to keep accounts in proper form, so any individual who is a merchant, must keep accounting. Although an individual is required to keep accounts, it is not always required to hire a certified public accountant, as the commercial code states that no accounting should be taken by a public accountant.
The obligation to have public accountant arises from the requirement of other rules regarding the signing of financial statements and tax returns, documents that in some cases must lead to the signing of a public accountant, in addition to the signature of the legal representative , and in those cases when some individuals should by obligation hire an accountant to sign and certify the necessary documents.
This is the case for example of taxpayers in the amount of their income or their assets are required to file tax declarations signed by a public accountant.
Other taxpayers and forced to carry entities ledgers must submit the statement of income and complementary or income and assets, as appropriate, signed by the public, linked or not occupationally counter to the company or entity, when the gross estate on the last day of the taxable year, or gross income of the respective year.
This case applies to any individual person who is a merchant, and therefore must keep books.
Additionally, in the case of the declaration of tax , if this shows a credit balance, it must be signed by a public accountant , so that an individual person and does not meet the ceilings of of the Tax Code should hire a certified public accountant for to sign your tax return. This also applies to individuals who are required to keep accounting.
From the above it is concluded that individuals who are not required to keep accounting not traders, as in the case of those who exercise professionals, not be obliged to hire a certified public accountant, at least with regard to the obligations tax.