A whopping 135,883,000 tax returns were processed in 2018. Like most Americans, you’re probably preparing for the upcoming tax season.
When you do your own taxes, this makes it even more of a hassle. Things get even more complicated if you’re doing taxes for your own business.
Although doing your own taxes can save you some cash, it’s not always worth it. Doing your own taxes can be a huge headache, and increases the likelihood of making an error.
Instead of compromising your spare time and your sanity, you should consider hiring an account. Here are eight reasons why you should have a professional do your taxes.
Certified Public Accountant (CPA) vs. Accountant
Before we get started, you should know the difference between a CPA and an accountant. If you’re wondering: “Does a CPA do taxes too?” The answer is yes.
Both an accountant and a CPA can help you with your taxes, but there are a few key differences between the two. While an accountant can’t represent their client in front of the IRS, a CPA can. Unlike an accountant, a CPA must pass a test that attests to their experience and qualifications.
1. Eliminate the Chance of an Audit
No business wants to have an audit. Unfortunately, many businesses don’t hire an accountant until it’s too late. However, if you hire an accountant, you can avoid this process altogether.
Your business could be subject to an audit if you have too many errors or too many write-offs. A tax professional can help prevent these kinds of mistakes on your tax returns.
2. Communication with the IRS
The IRS is something that you don’t want to mess with. If you receive a letter from the IRS inquiring about substantiation for a purchase, it needs to be taken seriously. Although it might seem like a harmless letter, it’s better to hand it off to a professional.
Replying to the IRS on your own isn’t a great idea–if you respond incorrectly, you’ll be in trouble. When you hire a CPA for taxes, you can be reassured that they’ll handle the situation appropriately.
3. Save Money on Software
There are several accounting software that you can utilize for your taxes, but they all have one thing in common: they’re expensive. If you pay for a cheaper software, you’ll be missing out on certain helpful features that you actually need.
When hiring an accountant for a tax return, you don’t have to worry about finding and paying for expensive software. Accountants have access to high-quality software. The best part is you don’t even have to take the time to learn it.
4. No Need to Learn Tax Laws
An accountant and CPA know taxes. They’re aware of the laws and regulations that affect and benefit your business.
In fact, you can actually make more money on your taxes by hiring an accountant. They can help you take advantage of the latest changes in tax laws, resulting in savings that can go towards your business.
Not only will hiring an accountant help you save money, but you’ll save time as well. Not having to learn about complicated tax laws can give you more time to focus on your customers.
5. Save on Deductions
As a busy business owner, you find yourself waiting until the last minute to compile a list of deductions. That’s just not enough time to think of all your possible expenses.
In fact, a lot of business owners don’t think to include certain deductions like donations to charity. Some other deductions include advertising, property rental costs, depreciation, contract labor, and even business lunches.
A tax return accountant can keep track of all your deductions during the year. This way, you won’t be scrambling at the end of the year, and you’ll get all the money you’re entitled to.
6. Concentrate on Your Business
Doing taxes is hard work. Keeping track of receipts, expenses, and trying to decipher tax laws is enough to make your head spin. On top of all of that, you have to keep track of your business and employees.
Why not hand the task off to someone else instead? Having an accountant will give you enough time to concentrate on running your business and providing customer satisfaction. When someone keeps track of your finances for you, you can be worry-free.
7. Less Stress
When you do your own taxes, there’s always the risk of something going wrong. The stress doesn’t stop after filing your taxes either–it lingers until you get your return. If you often stop to question whether you’re doing something right, you should know that this type of stress isn’t worth it.
Instead of being terrified at the possibility of your tax errors resulting in an audit, have a professional handle it for you. When you find a tax professional that you trust, you’ll feel a huge weight lift off of your shoulders.
8. Tax Loopholes
When you use an accounting software, you don’t get the benefits of tax loopholes. Successful businesses often save thousands of dollars by taking advantage of legal loopholes.
For example, someone who works in a home office can receive a huge tax break on certain expenses. When the home office takes up a portion of a home, the business owner can deduct these costs from property taxes, mortgage interest, and even insurance premiums. Deductions can even be taken off of utilities like heat, water, and electricity.
In addition to all of these savings, a person who works from home can also get deductions from anything related to their business, such as travel, office supplies, and marketing campaigns.
Hiring an Accountant
Making a mistake on your tax forms could be detrimental to your company, and should be avoided at all costs.
Don’t stress during tax season, and consider hiring an accountant instead. In addition to saving stress and time, you’ll be able to have some extra spending money from your return.
Deciding to hire an accountant is the first step in properly managing your finances. Our team of accounting experts can help you cut costs and save money. If you’re looking for Tax Services Allentown and the surrounding Lehigh Valley area, please Contact us to schedule your tax preparation appointment today.