With each quarter of tax season looming, it is that time to get your tax returns in order. As a small business owner, this can be a stressful time as there are so many things to take into account during tax time such as claiming tax deductions. However, you can avoid all the pain of filing taxes if you have engaged the services of a qualified accountant. They will take care of all things tax so that you can focus on your business. The following are some of the things an accountant can do for you during tax season.
1.Saves You Money
When you hire a professional accountant they will be up to date on the changing tax regulations and rules. It is impossible to keep yourself updated on all the changing laws and hence you can end up paying more than you should. With an accountant, you can take advantage of the changing laws and pay less. The accountant will ensure that your business is compliant with all laws so that you do not have to pay fines for a mistake you’ve made. Lastly, they will help maintain your books thus saving you time so that you can run your business instead.
2.Claim Tax Deductions
Small businesses could benefit a lot from tax deductions, money that could then be reinvested into the business to grow it further. The Internal Revenue Service (IRS) makes amendments to the tax code allowing business owners to claim deduction on ongoing expenses directly related to operating a business. When you hire an accountant, they will know all the deductions you are eligible for such as depreciating assets or transportation costs. They will ensure that the business claims every item it is eligible for in the tax code thus saving your business money over the long term.
3.Provide Consultation on the Business
Accountants will not only help you by preparing your returns but also providing advice on big business decisions. The accountant is usually knowledgeable about what other similar businesses are doing to improve their business. They can also help you deal with unpaid invoices, settle bad debts and improve cash flow in your business. The beginning of the financial year may be the best time to sit down with the accountant to talk about audits and long term business strategies.
4.Help to Cut Costs
As a small business owner, there are so many expenses that pop up that it can be easy to lose track of what is important and what is not. Moreover, since your business is like your baby, it can be difficult to analyze your expenses objectively. But the accountant is not as attached and hence they can take a critical look at your expenses and cut out the unnecessary bloat. They can provide advice on what expenses need to be cut without impacting the business. If you are lucky they can also suggest cost-cutting solutions that could take the business to the next level.
5.Save You Time
If you have never been good with math or just do not have the time to do your taxes, an accountant is the best thing during the tax season. After all who wants to spend weeks calculation tax deductions and submitting returns? As a small business owner, any time you spend not working on your business means significant amounts of revenue lost that can never be recovered. Having an accountant and providing them with your books and accounting software such as QuickBooks will be very convenient. The accountant will finish compiling all your returns in no time, saving you valuable time.
“The best thing with having an accountant is that you never have to think about getting audited.”
6.Avoid an Audit
There is nothing so dreadful for a small business owner than getting audited. The thing with an audit is that you almost always are found to have violated some regulation. Unfortunately, a lot of people think an accountant can fix their problems when an audit has already been ordered, they cannot. The best thing with having an accountant is that you never have to think about getting audited. They will give you advice and submit returns that are compliant with the tax regulations and laws. Oftentimes, small business owners get audited when they fill their forms with too many mistakes. These will raise red flags due to either too many write-offs or being too charitable. An accountant will ensure you do not make any mistakes on your returns.
7.Helps you make Real-Time Decisions
When you hire an accountant, they can provide you with valuable advice in moments of crisis. For instance, they can help you when you are thinking of hiring more employees due to a spike in orders. Since they are in the industry they can tell you why it may not be the best time to hire more employees or ramp up production very near to tax return season. An accountant will also help with real-time cash flow monitoring and budgeting, which if not looked at carefully could make you pay more in taxes.
8.They Can Teach You Best Practice
There are different accounting standards and regulations for different industries and having an accountant will come in handy during returns seasons. You will thank them even if they are giving you bad news since knowledge is power. They will show you how to compile your books according to industry standards so that your filings will not raise red flags at the IRS. They will also help you get the bigger picture of the industry and help make plans for taxation going forward so that you can pay as little as possible.
Having an accountant during this tax season is one of the best things for your small business. There are all kinds of things that you need to take care of, that you should not add filing returns to that list. With an accountant, you can have the peace of mind knowing that your returns have been done right. While accountants cost money, the money you save by submitting returns the right way will more than make up for the cost of hiring one. Moreover, an accountant will be handy not only during tax season but also far beyond it.