Tax season can be a stressful time for any small business owner. Whether you’re managing 1099s for contractors, preparing your personal or business tax returns, or looking at opportunities to maximize your deductions, it can be overwhelming to even the savviest of entrepreneurs.
It might come as a surprise, but millions of business owners forego hiring a tax professional when it comes time to file their taxes.
Maybe they want to save a few dollars or avoid the hassle of sharing their books with someone else — but, the unwillingness to use a tax expert to handle your business taxes can lead to an even bigger headache.
While many business owners can manage their own taxes, the vast majority of people will benefit from hiring a CPA with tax experience. Not only can tax experts optimize your tax returns and ensure they’re compliant with current regulations, but they can provide strategic insight into your business operations.
If you are deciding between doing your business taxes internally or hiring a local CPA Firm, here are a few reasons to consider outsourcing your business taxes to a professional.
Mitigates Misinformation or Filing I
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 Unfortunately, some of those resources are outdated or simply false.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.
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.
Can Improve Recordkeeping
If you ask any tax professional how to increase your business tax deductions, they will likely say to improve your recordkeeping. 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 recordkeeping process. By focusing on a safe, organized, and accessible recordkeeping strategy, you’ll put yourself in a better position when it comes time for tax season.
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.
Saves You Time and Energy
They say that smart entrepreneurs focus on their core competencies and hire others to fill in the gaps. This makes a lot of sense within the context of business taxes.
It can take a lot of time and resources to file your own taxes, and it can be extremely frustrating if you have never done it before. Instead of wasting hours researching, organizing, preparing, and filing your taxes, you could put that effort into your business — thus generating more revenue.
By hiring a CPA to handle your business taxes, you can focus on growing your business, and leave taxes to the expert.
Gives You Peace of Mind
Even if you are able to complete your business taxes alone, would you feel completely confident that it was done correctly? Are you sure that you found every tax deduction that you were eligible for? Are you prepared to defend your return if the IRS audits you?
In most cases, the answers to these questions will be “no.” There is no reason to make this time of the year any more stressful than it already is — find a professional and give yourself some peace of mind.