Some business owners opt to take on their own tax forms every year. However, unless they have accounting experience, it probably takes a lot of time. With a tax accountant, they’ll save time and money on their tax filings. A tax accountant will track the company’s income and expenses. They can do this all year long or during tax season.
Claim All Your Deductions
A tax accounting expert has experience with tax filings across multiple industries. They will document all your business earnings, expenses and any deductions you have available to you. They won’t let a tax deduction go undocumented.
Whether you maintain a tax accountant all year or only need someone at tax season, a tax accountant will compile your data for your forms and filings. Many tax accountants also have tax preparers that can come in and help your accounting team put together the right documents. This saves you and your staff time and ensures that all your information is accounted for.
Avoid an Audit
If the Internal Revenue Service (IRS) finds multiple errors on your tax documents during review, they’ll initiate an audit of your company’s finances. An error can be anything from giving inaccurate information to not following the directions on the form. An audit will disrupt your business operations. The executive team and accounting staff will have to work in overdrive to gather and prepare documents for the auditing team. A failed audit can result in up to five years in prison and up to $100,000 in fines.
A tax accountant will ensure there are no errors on your tax forms and filings so you can go into the new year stress-free.
Maximize Your Return
Tax accountants keep up to date on deductions, credits and incentives available to businesses filing their taxes each year. Often, the government offers incentives and credits for start-up businesses or small businesses just for doing business as usual. Your tax accountant will keep track of whether you need extra paperwork or documentation as well.
A tax professional may even find deductions you didn’t even know you could claim. With a fresh pair of eyes and a lot of industry expertise, your tax return will be a high one.
Hiring a tax accountant takes the pressure off your business and your staff. With someone else to worry about tracking your income, expenses and deductions, you can focus on your business. A tax accountant for your business means a higher return and a stress-free year.