Small Business Tax Preparation: Work with a Tax Pro

Small Business Tax Preparation: Work with a Pro - ASCEND
Categorized as Accounting, Taxes Tagged , , , , , , ,

Signs That Your Need a Tax Pro

Usually, the biggest sign that it’s time to hire a tax pro is that sinking feeling in your gut. You know that you’re not on top of the tax codes. Maybe you’re not even sure when or what to file, or you’ve got that nagging feeling that you’re either paying too much or may have taken a bit too many of those questionable expenses or deductions. Then, it’s definitely time to hire a pro.

Other times you’ll know it’s time to work with a professional tax accountant are when:

  • It’s time to update your business plan.
  • You haven’t updated your books in over a month.
  • You don’t have an accounting system (like our Back Office Accounting System).
  • You’re still dealing with letters from the IRS on past tax years.
  • You’re behind on your tax filings (by the way, it’s not too late to get started on those!).
  • You’ve outgrown the ‘Sole Proprietorship’ business entity and know it’s time to restructure.
  • You have employees, capital assets and expenses, and other tax complicating circumstances.

Benefits of Working with a Pro

First, there’s the old adage, “Work on your business, not in your business.” As a business owner,  you have likely seen your time whisked away by every little task you can imagine. Then, you realized that you need to delegate out most of that, so that you can steer the ship. One of those tasks is your accounting and tax preparation.

That said, here are some real benefits you’ll realize from working with a tax adviser:

  • Pay Less Taxes: This is not a guarantee, but in our experience we often see entrepreneurs miss expenses and deductions that can lower their tax bill. There’s also the form of business. A simple change to an S-Corp can often save a good chunk of taxes.
  • Keeping Good Records (Just in Case): When we do your taxes for you, you’ll have a complete record, including all schedules and supporting information.
  • Reduced Risk of Audit: Audits tend to get triggered algorithmically, meaning a computer catches what it sees as a common error or anomaly that results in a successful audit. While there’s no guaranteed audit prevention, a tax pro will reduce those changes with a complete and accurate return.
  • 2018 Tax Changes: There were some significant changes to the 2018 tax laws, and a pro will help you take advantage of those and avoid missing out on new benefits.

Key Records You Need to Keep for Taxes: Download Now

DIY? How a Pro Can Still Help

If you’re a business with employees, vehicles, inventory, etc., then you really need to consider hiring a pro to handle your taxes. However, if you’re a solopreneur or a freelancer who has been keeping great records and using tax software, then you can probably get your own taxes filed. That said, it still makes sense to hire an accountant to give your data a quick review, just to make sure you’re not missing anything that could reduce your tax debt or keep the watchful eyes of the IRS off of you.

Have Questions?

If you’re still not sure whether or not you could use a professional tax accountant to help you with your small business taxes, then give us a call, set up a free consultation, or check out our Back Office Accounting System. We’ll talk through your situation and help you make the best decision for your business.

Call today at 888-297-3321.