While you might think managing your taxes is just another part of your financial responsibilities, such as paying bills and monitoring your bank accounts, think again. Accounting, tracking and filing taxes swallow up a lot of your valuable time that could better be spent enhancing your business.
Small business owners, who use a certified public accountant to handle the draining chore of taxes know it’s worth every penny. If you haven’t made the leap yet, here are some great reasons to get started.
1. It’s wise to start working with a CPA at the outset, as you can set up accounting systems, understand deductions and record-keeping from the beginning, rather than play catch-up later. This will save you money in the long run.
2. A CPA or other financial advisor can help you avoid mistakes, which can be costly. A qualified professional can also help you with long range planning, including saving for retirement, managing your investments, scheduling quarterly payments and strategic planning. You don’t want to miss out on tax credits and deductions that can bring big benefits down the road.
3. Understanding and staying current with tax law changes is, at best, challenging and at worst can cost you money. Tax laws are in a nearly constant state of flux, so you are well-advised to invest in a CPA or EA (Enrolled Agent). You can count on them for the most up-to-date information, knowing that they are required to take continuing education courses annually.
4. With a CPA, you can find a tax professional with expertise to meet your particular needs. Much like doctors and attorneys, tax advisors focus on specific areas such as personal taxes, small business, corporations, nonprofits and other specialty areas. There’s no need for you to be a tax expert AND a small business owner. A CPA can even assist you with keeping your licenses current and reviewing regulations that may affect you and your business.
5. Don’t forget about audits. While an audit doesn’t have to be intimidating, it will be much smoother sailing with a CPA in your corner. To begin, an experienced tax professional can help you avoid having your tax return stand out to the IRS. They also are comfortable with tax authorities and can help you negotiate and navigate an audit, should that situation arise.
If you have questions about whether hiring a tax professional makes sense for you, please reach out to one of our tax advisors. You can also visit The American Institute of CPAs website at https://www.aicpa.org or the National Association of Enrolled Agents website at (https://www.naea.org). They offer free tools to help you find the right advisor for you, in your area.