Entrepreneurs and small business owners often dread tax season. For one thing, it means you must reconcile all your accounts. It is something that most businesses mean to do, but often gets put off.
Then there are all those extra forms you must fill out. Did you hire a freelancer? Better get that 1099 out the door.
Did you buy equipment two years ago? Better be ready to fill out a depreciation form.
Rather than do your taxes yourself, this may be the year you should hire a tax expert for the job. Not sure if it is worth it? Keep reading for the 5 benefits you get if you hire an experienced accountant.
1. Reduced Stress
Preparing tax forms causes most small business owners a lot of stress. Get it wrong and an audit can appear on your doorstep.
While the IRS will generally let you fix any minor mistakes on your taxes, the audit process can soak up a lot of time.
Hiring an accountant means that you can generally trust that the IRS won't come knocking for some basic mistake. It also frees you from dealing with the forms and the math involved.
2. Efficiency
Even if you do feel comfortable dealing with your own taxes, you're not an expert at the process. It will take you longer than an accountant to fill out the paperwork. That is time you could spend working on your business and generating profit for the next round of taxes.
3. Maximize Your Return
Remember the old chestnut about spending money to make money. That frequently applies when you get help with taxes.
An accountant will know about any new credits or incentives your business qualifies for under current rules.
4. Get All of Your Deductions
Much like credits and incentives, deduction rules change on a regular basis. While you can reasonably keep up on all of those changes, good accountants make a point to know them. That means you get all the available deductions by leveraging expert help.
5. Tax Planning
You can certainly benefit from hiring a tax accounting during tax season, but that is only the way an accountant can benefit your business. The tax code is a big, complicated thing that includes lots of ways for a business to reduce its tax burden.
You just can't wait until the last minute to put those things into action. You need tax planning to take advantage of those options. You can head over to our Finance section for more info on taxes.
Using A Tax Expert Makes Sense
A can-do attitude can help entrepreneurs get a business up and running, but it is not the best choice for all situations. In the case of your taxes, using a tax expert makes sense.
A solid accountant knows the forms, rules, and deadlines you must meet. Just as importantly, they also know the deductions, credits, and incentives that let you get the most out of your tax return. A small business tax expert such as a CPA can even help you plan to reduce your taxes owed in future years.
CPA Conclusion
Ready for more financial or accounting tips? Head over to our Finance section for more articles on accountants, taxes, budgeting, and investing.
