As a small business owner, you have more than just your personal taxes to consider when tax season rolls around. Taxes can be complicated and time consuming, and while tax software may seem like an easy alternative to hiring an accountant, that may not be the best option for your company! Keep reading to discover the 5 ways accountants can help you during tax season versus a do-it-yourself software.
photo from wix.com
1. your accountant ensures you're compliant with the tax code
As mentioned in previous blogs, hiring a professional accountant is a fantastic option for your business. There's also more to taxes than just filling out the boxes! As a professional trained to know the tax code and its changes inside and out, your accountant will ensure you are 100% compliant. The tax code is confusing at best. Especially with the new changes in 2018, hiring an accountant can help you strategize minimizing your tax liability for the next year. Even if you've had no trouble doing your own taxes in the past, business taxes are significantly different from personal taxes. By outsourcing your taxes, you'll have more time to focus on what's important: growing your business!
2. your accountant ensures you're compliant with Payroll
Similar to income taxes, payroll taxes can get complicated, especially depending on the industry you're in. Payroll taxes in particular can be stressful for new business owners, but your accountant can help guide you in the right direction. Your accountant can also help you see blind spots in your business and help you better financially prepare. Even if your accountant only reviews your payroll compliance quarterly, it will help you rest easy knowing your business is in safe financial hands.
3. YouR accountant helps you find deductions you may not have found with software
While it may be more convenient to stay at home in your PJs while you peruse through your tax software, meeting with your accountant is worth the time and money you will save in the long run. Not only will your accountant help you find deductions, but they will also help you understand why you qualify for certain deductions. As you know, there are many expenses that go into starting a business, and your accountant will help you find which expenses are deductible and which are not.
4. Your accountant helps you in case of an audit
While many do-it-yourself programs offers "Audit Defense", they do not protect you from improper inputs. An accountant ensures your due diligence is complete with them when you meet with them to complete your taxes. Here at Practical Accounting Solutions, we have a complete and thorough interview with each client about any types of income that they may have that may not be included in the documents they brought with them to their appointment. We also try to qualify them for deductions and credits that they may not have known they qualify for by picking up on items from this interview. The more discussion over a longer period of time between an accountant and their client, the easier it is to ensure that everything is accounted for in an appropriate manner.
5. Your Accountant can help you financially plan for your business
Your business took months, if not years, of hard work and planning. When it comes to your business finances, your accountant can help you plan the best financial strategy for you. You want your business to grow efficiently, and your accountant can help ensure your financial t's are crossed and i's are dotted. If you're thinking of taking out a loan or making a big business move, talk to your accountant to help plan the best route for your business! According to Fudera, 89% of small businesses credit higher success to working with their accountant. While your product matter or service is the backbone of your business, your saving money on your financial expenditures can help your growth, too!
If your accountant was able to provide you ways that more than paid for his/her fee wouldn't it be a no-brainer to hire him/her? This could be in tax savings (i.e. S-Corp vs. Sole Proprietor), additional deductions, revenue strategies, timing of receiving income throughout the year (i.e. not billing December's clients until January), timing of making large purchases (i.e. vehicle/equipment purchases, paying January rent in December, etc.) or a number of other things that having regular discussions with your accountant can achieve for your business. If you are going to make some of these decisions anyway it is best to plan them so that you get the biggest bang for your buck. Practical Accounting Solutions does this every day and can certainly do this for your business as well. Just give us a call or send us an email to set up an appointment.