Is Your Small Business in Need of Tax Preparation Services?
Filing taxes can become overwhelming for someone not conversant with tax matters. If you're running a small business, it is advisable to consult tax preparation services, which can help minimize your tax bill while maximizing your deductions. What are the signs that say your small business needs tax preparation services?
1. Your Knowledge of Tax Issues Is Near Zero
A lack of understanding of tax matters can lead to penalties and other fees. If your business has received letters from a taxing authority, it's time to bring on a professional. Ask yourself: Do I know what type of business entity I am? Do I know which forms I must file each year with my state and local government offices? Are my records organized correctly? If most of your answers are no, you need a tax preparer.
2. Your Last Returns Had Errors
Having a tax preparer look over your returns is always a good idea. If you've made mistakes, you can avoid making them again by hiring someone to correct those errors. Hiring an accountant to review your returns will ensure they're complete and error-free so that you don't have any unpleasant surprises when it comes time to pay your taxes.
3. Your Tax Obligations Are Complex
It's easy to get confused if you're not an expert on tax law. The IRS website lists pages and pages of topics and subtopics—and those are their frequently asked questions! It's no wonder most small business owners struggle with their tax returns.
Taxes can be quite complex, especially when your small business has operations in multiple states or streams of income. If you aren't prepared for all that, consulting tax preparation services might be a good idea.
4. You Want To Take Advantage of Credits and Breaks
You may be leaving money on the table if you're not taking advantage of credits, breaks, and rebates that reduce your taxable income or help pay your taxes. These tax advantages can make a significant difference to your profitability. Make sure you don't miss out by keeping track of all your receipts throughout the year—you never know when they might come in handy.
5. You Have Been Picked for an Audit
Audits are stressful, but there are some steps you can take to lessen their impact. The first is to understand what happens during an audit. When it comes down to it, you're going through an audit because your tax return was flagged as potentially problematic by either your accountants or IRS officials. It is highly advisable to have the help of a professional tax preparer for an audit.
There is no way around paying taxes, but you can ensure you pay your fair share when you understand your tax obligations. Contact tax preparation services to ensure your business is in the right books with the taxman.