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How CPA Firms Can Save Your Practice Money in 2021

How CPA Firms Can Save Your Practice Money in 2021?

If you’re like many doctors, therapists, and small businesses in Pittsburgh, you may be on the fence about hiring a CPA firm. Maybe you already have a bookkeeper, and you feel that that’s enough.

But CPA firms in Pittsburgh can do more than just prepare your taxes. They can also save your practice money. Here’s how:

1. Create a Custom Tax Savings Plan

Many practices spend more than they need to on taxes. A CPA firm can help legally and ethically reduce your tax liability by creating a custom tax savings plan.

Tax planning services will incorporate a variety of strategies to lower your tax burden while ensuring that your practice is compliant with tax laws. Along with finding ways to reduce your taxable income, your plan may include things like transitioning to an S Corp or taking certain tax credits (like those for continuing education costs).

Tax planning can save your practice quite a bit of money on taxes. A CPA firm will have the knowledge and experience to create a custom plan that’s unique to your practice. Regular meetings with your CPA will also help ensure that your tax plan is up to date. Changes can be made as needed to maximize tax-saving strategies.

How Practices Can Use CPA Firms to Save Money

2. Find Missed Deductions

Along with tax planning (which happens before filing), a CPA firm can also find missed deductions that your can practice can take advantage of. CPAs have extensive knowledge of tax laws, and they know how to find deductions that your practice didn’t know existed.

Things like depreciation expenses, association fees, license fees, continuing education expenses, and other expenses can be written off to reduce your practice’s tax liability.

Finding missed deductions can help your practice realize significant tax savings. Working with a CPA firm will give you the best chance of finding these overlooked deductions.

3. Take Advantage of New Tax Laws

Tax law is ever-changing. Credits that are available one year may not be available the next. New laws may be introduced that can save your practice money for the current tax year.

Unless you’re a tax professional, you probably don’t know about all of the tax law changes that happen regularly. You may miss out on opportunities to keep more money in your practice’s pockets.

A CPA does know about tax law changes. It’s their job to keep up with these changes. A CPA firm can help you take advantage of new credits, provisions, and other changes that may lower your taxable income.

When you work with a CPA firm, you can rest assured that not only are you maximizing your deductions and engaging in tax planning but that you’re also complying with recent tax law changes.

4. Help You Plan for the Future

Like any other business, your practice is growing and evolving. What’s true for you today may not be true for you five years from now. As your practice’s needs change, so will your tax planning and preparation.

Unless you have extensive knowledge and experience with tax law, you may not know exactly how your future plans will change your tax situation. That lack of knowledge can make it difficult to make smart decisions about expanding your practice, hiring new staff, or whatever the future holds for your practice.

A CPA firm can help you plan for the future by helping you understand how your decisions will impact your financials and your taxes. CPAs can also act as advisors, helping you make informed decisions about your practice’s future path.

Whether you’re looking to expand or hire new staff, a CPA can help you plan for your financial future and help save your practice money in the process. A CPA firm can also help update your tax savings plan so that your practice is prepared for the next quarter. The expertise and time savings offered by CPAs translates to greater money savings for your practice.

5. Save You Time

Time is money, and a CPA firm can save you a lot of it. Your job is to run your practice – not spend your valuable time on tax planning and preparation.

Did you know that the average taxpayer spends 24 hours preparing taxes? That’s an entire day – or three 8-hour working days – you could be spending on your practice.

Offloading your accounting and tax preparation tasks to a CPA will free up your time so that you can focus on your patients and growing your practice. Time saved is money saved. In fact, working with a CPA firm may even increase your bottom line through tax savings and more time invested in growing your practice.

To save even more time and money, inquire about any additional services that may benefit your practice. These services may allow you and your staff to focus even more time on your patients and practice.

6. Reduce the Risk of Costly Errors

Tax law isn’t your area of expertise. You can handle your practice’s financials and tax preparation on your own, but you’re taking a risk in doing so. Tax law is complicated. It’s easy to make an error, but in some cases, errors can be very costly.

In fact, tax and accounting mistakes cost businesses billions of dollars each year. Even if an error doesn’t bankrupt your practice, it can still cause stress and frustration, particularly if auditing is involved.

CPAs know and understand tax law. Their experience and expertise greatly reduce the risk of errors, which means fewer headaches and money savings for your practice. It also means peace of mind that your accounting and tax needs are being handled by an experienced professional.

Final Word

A CPA firm can save your practice money in 2021 and beyond. In addition to handling tax and accounting tasks, a trusted CPA can also act as an advisor and ally for your practice. Their expertise can help you make smarter, more informed decisions.

From tax planning to time savings and error reduction, a CPA firm can offer your practice many benefits.

Our Pittsburgh CPA firm can help your practice save money. Contact us today!

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