Running a successful business requires juggling a myriad of responsibilities.
You may be taking care of your businesses finances, but not entirely focused on reducing your tax liability.
We believe that your time should be spent on your core business, and not on studying tax laws.
Lets get into why you should consider getting a tax professional for your business.
6 Reasons Why You Should Consider a Tax Professional for Your Business
#1 Reason to Consider a Tax Professional - Experts in Tax Laws
Whether they are an accountant, enrolled agent, or a certified public accountant, they stay up to date with federal and state tax laws.
They are able to utilize deductions, credits, and tax breaks someone who isn't versed in tax laws know.
Tax professionals can provide guidance on how to structure the business, investments, and other decisions to minimize tax implications.
In the worst case scenario, should your business face an IRS audit, the support of a tax professional can be a great tool.
#2 Reason to Consider a Tax Professional - Saving Your Time
It is a full time job alone keeping up with tax laws, regulations, and deductions.
Amid all these complexities, there's also the huge task of sorting and preparing all the documents needed for tax filing, which in itself can eat up a lot of your time.
So why not just give them access to everything so you don't need to backtrack and dig up old information from months ago or even years ago.
A tax professional ensures all necessary forms, payments, and other actions are taken on time, saving you from potential penalties.
#3 Reason to Consider a Tax Professional - Saving Money
Giving over your finances to a tax professional can be risky, as it takes a lot of trust to hand everything over.
They can also provide advice on how to structure your business and maximize investments in a tax-efficient way.
While doing that, they can also examine your tax returns and payroll to find ways to save money and avoid any errors that could result in penalties.
If you were to be audited, they can also represent you, and take the stress off trying to represent yourself or trying to find someone to represent you in a short period of time.
#4 Reason to Consider a Tax Professional - Risk Mitigation
By utilizing an outsourced accountant, you can protect yourself from the IRS and take advantage of the accountants tax planning and audit support.
Alongside this crucial layer of financial protection, there's more to an accountant's role than just mitigating risks associated with the IRS.
Tax experts can offer strategic tax planning that considers your business's risk profile.
They devise the best strategies that are tailored to your business and not just something cookie-cutter.
A tax expert will ensure that all tax forms are filed promptly, helping you evade these additional costs.
#5 Reason to Consider a Tax Professional - Scalability
If your growth strategy involves opening new stores or adding new products/services, a tax expert can provide critical advice on the tax implications of these decisions.
Evaluating your financial goals, they can guide you in structuring these expansions in a way that optimizes your tax position.
They know what the best strategy for keeping more of what you earn, and pay the government the least possible.
With the growing business, a tax expert can offer valuable insight on your business structure and may suggest you change it for tax purposes.
#6 Reason to Consider a Tax Professional - Long-term Strategic Planning
Tax professionals use their expertise to forecast future tax liabilities based on your business's growth trajectory.
This ties into scalability, you and the tax professional can sit down and plan for what you want to happen in the future, and they can lay out steps on how to financially support it.
Once you've mapped out your future with your tax professional, it's time to put those plans into action.
But every step you take can have tax implications, and that's another area where your tax pro can really make a difference.
Whether you plan on acquiring assets, making significant investments, or seeking external funding, a tax professional can provide guidance on the tax implications of these decisions.
Not only can a tax professional help you stay abreast of the latest tax laws, but they can also save you time, money, and potential risks associated with non-compliance.
So, if you've been handling your business taxes on your own, now might be the perfect time to consider partnering with a professional.
We are an outsourced accountant and we would love to help you!