12th Nov 2007
How do I file taxes? Do I really need a CPA?
The question of the day was: I am ready to start my practice, but I really don’t want to have to pay a CPA. Can’t I do my taxes myself with good accounting software?
I’m always curious why chiropractors think they can do it all themselves. You were trained as a chiropractor, not an accountant. Even if you are starting out your chiropractic practice as a sole proprietorship, you need an accountant, and you REALLY need a CPA. So what’s the difference?
An accountant or bookkeeper can do your monthly/quarterly accounting and help you with payroll taxes and some other tax filing, but a CPA has to keep up to date with tax issues and is able to go with you to the IRS if you get audited. If you think taxes aren’t complicated, here is a site that lists federal, state, and local taxes, called “Tanned Feet.”
By the way, a CPA is not a financial planner, although many can give you tax advice. A financial planner can help you figure out how to set up pension and profit sharing plans, and 401k’s and all that tax-shelter stuff.
Here is my suggestion: Find a local CPA who has a bookkeeper on staff, someone who can help you with QuickBooks or other financial software. At some point when you start to make lots of money, start looking for a financial planner too.
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