Business Compliance Requirements for CPAs

Published September 15, 2021
quickbooks accounting tool for cpa business compliance

CPAs get inquired about their business taxes and fiscal health more than any other small business owners. But there’s more to their job. They have to devote all their efforts to managing the finances of clients’ businesses and complying with industry regulations.

Several local and federal level statutes require CPAs always to maintain a strict code of conduct and business compliance. Although this sounds normal to a practicing CPA, aspiring accounting professionals may feel daunted.

CPAs need to exercise caution when responding to different types of claims. They have to learn about a diverse range of business compliance factors that directly influence their offerings. Moreover, staying compliant allows CPAs to build strong client relationships while enhancing their satisfaction and data privacy.

Forming a CPA Business Identity

Professional accountants can start a CPA firm however they like. They can opt for sole proprietorship for full autonomy or build a partnership. They can also get a license for running a multi-member LLC.

If you decide to sell stocks or change the type of business entity, you must submit specific business documents with complete financial records to obtain a legal license.

Getting Your EIN

Another essential compliance code states that every CPA has to obtain an EIN. You’ll need the Employer Identification Number to perform various business tasks, such as hiring new team members, opening a bank account, and filing business taxes.

Contact the US Trademark and Patent Office to obtain a free-of-cost EIN today.

Applying for Business Licenses and Permits

The next step in starting a compliant and successful CPA firm is to obtain the necessary licenses and permits. This step keeps you on your toes about new and old policy requirements and helps you steer clear of penalties by the local or fed authorities.

Licenses and permits are required to open up a physical working space. They also enable you to protect your business’s intellectual property. However, the primary objective of obtaining a business license is to operate your CPA firm legally.

Having a Registered Agent on Standby

All legal, corporate, and other authoritative documentation procedures must be conducted through a professional registered agent. You’ll need an adept, well-versed agent to correspond with local and federal regulatory bodies.

Presenting Error-Free Annual Reports

CPA firms, just like other legal businesses, have to submit annual reports to the IRS and other authorities for audit, tax filing, and business number consolidation. Annual reports must be submitted on time whether you’ve been in the market for one year or ten years.

Often, the deadline to submit these financials is aligned with tax deadlines. This helps CPA firm owners deduce tax submissions along with yearly reporting. To make your annual reporting, data consolidation, and tax prep faster and more efficient, invest in QuickBooks. This automated accounting software can perform all kinds of recordkeeping tasks without errors.

From IRS tax filing to balancing liabilities and assets to a zero, QuickBooks can help you perform critical accounting functions in a few clicks.

QuickBooks is a fully automated and secure accounting software designed and developed by Intuit. The tool is targeted toward small businesses, especially CPA firms, who want to gain a competitive advantage over competing firms. However, several big companies have also tested and integrated their operations on QuickBooks accounting software.

The software offers remote access, cloud storage, easy tax filing, data consolidation, and customer relationship management, among many other robust business management features. It can help CPAs track expenses, make digital payments, and streamline payrolls.

Intuit’s QuickBooks Accounting tool is available in Enterprise, Premier, and Pro versions. Each version is designed to meet the specific needs of unique business models.

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