As a small business owner, you juggle a lot of tasks. The first few years are critical to the growth and strength of your business, but tax debt problems can deal a serious blow to your financial future. Below are the ways a tax professional can help your business thrive.
Saves You Time
When you’re a business owner, you’re busy at all hours of the day. As the boss, you set your own hours and execute all the major decisions to keep your business up and running. If you don’t have the time or the patience to prepare your own taxes, have a professional do them for you.
Reduces Risk of Mistakes
Whether you tend to rush through your taxes or you have a mountain of records to sift through, you’re more likely to make a mistake if you do your taxes yourself. You already wear many hats as a business owner, so hiring a tax expert can take one more task off your plate. Hire a tax professional who’ll dedicate their time to each detail of your finances, helping eliminate errors and reducing the risk of an audit.
Keeps Track of Your Records
There are plenty of details to keep in your records, including receipts, accounts payable, accounts receivable, inventory, and client information. Without proper organization, you can lose valuable information. Qualified tax professionals can perform basic bookkeeping tasks in addition to other tax services. Based on your records, they can create quarterly and annual reports to track growth.
Helps You if You Get Audited
There’s no need to fret if you’re about to be audited. If the IRS performs an audit, a tax professional can organize and present all your information to the auditor. With a tax expert, you don’t have to scramble at the last second to find and organize all of your financial documents. Your tax professional will analyze your finances ahead of time to identify any mistakes and prepare a statement for the auditor.
Helps Expand the Growth of Your Business
Many tax professionals can give you expert advice in order to grow your business. They sit down with you to construct a business plan, establish quarterly and yearly goals, and keep track of your progress. If you want to take your business to the next level, a tax expert can help.
Types of Tax Professionals
Tax professionals come from many educational backgrounds, so there’s no one-size-fits-all expert. Depending on the size and goals of your business, you can hire one of these professionals to make your business thrive.
The basic accountant is skilled at handling a variety of tasks, including record-keeping, inventory management, legal advice, hiring employees, and filing quarterly taxes. Qualified accountants typically have at least a bachelor’s degree in accounting, finance, business, or mathematics.
Certified public accountant (CPA)
Certified public accountants, or CPAs, can do everything an accountant can do, in addition to a few more advanced-level tasks. Unlike accountants, CPAs are legally permitted to perform audits and represent you before the IRS. CPAs must also pass a CPA exam to prove that they’re proficient in all areas of finance and tax law.
Enrolled Agent (EA)
Enrolled agents specialize in tax law. Many enrolled agents begin their careers working with the IRS, so they quickly learn the ins and outs of the tax system. Enrolled agents are allowed to represent their clients before the IRS and give professional tax advice.
Similar to enrolled agents, tax attorneys specialize in tax law. Many have pursued degrees in finance, accounting, business, or even the humanities. Like all other attorneys, they must pursue a higher degree and pass their state’s BAR exam.
Finding the Right Tax Advisor
Looking for the right tax advisor for you? Below are just a few ways you can find them.
Ask a trusted source who they use to manage their taxes.
There are associations and forums available that list recommendations in your area.
Check out the online reviews of tax service providers to find the one that’s right for you.
Don’t wait until you fall into debt or get audited to hire a tax expert. Find a tax advisor now to ensure your success.