The 2020 tax deadline of July 15 is just around the corner. Filing your business taxes can be a hassle, depending on your situation. But when your return is more complex, you might find it’s worth hiring a professional. someone who can save you not only time and stress but also money. Consider these top reasons why your small business should hire a CPA to file your business taxes.
Why You Need a Tax Professional
You don’t have a tax professional you trust to help you with your business taxes? It’s never too late to start looking. Having a good tax advisor can mean the following:
- Saving money at tax time.
- Not having to pull out the records and do it yourself (and that’s about as painful as going to the dentist).
- Having someone who can help if you get audited.
1. Mitigates Misinformation or Filing Issues
There are a lot of guides about filing taxes for your small business. Unfortunately, some of those resources are outdated or simply false. Most entrepreneurs are not tax experts and do not stay current with legislation relevant to taxes. As such, it can be difficult to know the accuracy of the information you are using to file your taxes.
Tax law and guidelines for businesses change regularly, and only an experienced CPA can be truly be trusted to stay up-to-date with all the requirements. Hiring a professional tax accountant is an excellent way to mitigate any issues that might come from filing your own business taxes.
2. Your Time is Money
While you may be able to prepare your taxes yourself for $150 or less online, many do-it-yourself filers spend an inordinate amount of time doing it. According to the IRS, the average taxpayer spends 13 hours preparing their return. Hiring a tax pro can reduce that to the time it takes to gather your tax documents and forward them to his or her office, go over a few items with the pro, then review the final return for accuracy. If your time is better spent with family or friendsÂ during those early days of spring, then hiring a tax pro can make for sunnier days.
3. Mistakes Will Cost You.
If you do you’re taxes yourself, you are much more likely to make mistakes and they can cost you big. Even simple math errors can cause a return to be inaccurate, leaving the taxpayer liable for past taxes and interest. For errors the IRS believes are not accidental, such as failing to report income, taxpayers can also face large fines and even criminal prosecution.
4. They Are Available Outside Tax Season
When you work with a CPA, you have access to their knowledge throughout the year, not just during tax season. Not only do CPAs have experience with tax preparation and planning, but they can provide strategic advice and insight rooted in financial data.
Most of the issues that small businesses face involve finances. Having a financial expert at your fingertips can provide you with an additional resource for making better strategic decisions for your business.
5. Can Improve Recordkeeping
If you ask any tax professional how to increase your business tax deductions, they will likely say to improve your record keeping. Optimizing your tax deductions typically means collecting and tracking your business expenses in an organized manner.
If you hire a CPA to help with your taxes, they’ll likely look to improve your record keeping process. By focusing on a safe, organized, and accessible record keeping strategy, you’ll put yourself in a better position when it comes time for tax season.
6. Maximize Your Tax Deductions
One of the main benefits of hiring a CPA firm for your business taxes is that they can maximize your tax deductions. There are so many ways to find deductions in the operations of a business, but many owners are not aware of them.
Thankfully, experienced CPAs have the knowledge to help you identify and maximize all of your small business deductions. The more deductions for which you are eligible, the more money you can get back on your refund, thus reducing your tax burden.
7. Planning Ahead
The taxes you pay this year can affect the taxes you will owe next year- so it is best to look at the larger picture- and plan ahead for those events that you can plan (college, new house, business changes, moving, divorce). Most tax professionals would like you to meet with them before it’s time to do your taxes, while there is still time to take proactive steps to reduce your taxes or minimize other effects. A tax planning meeting can result in significant savings for many taxpayers and businesses.
Limitless Investment & Capital Tax Preparation Services in Arizona
While running a small business, every penny counts. Your small business may have the ability to minimize taxes which could be the difference between profitability and just scraping by. Don’t pay more taxes than you owe and hire a business tax expert from Limitless Investment and Capital.