There is a very good chance that you will be too busy with your business to remember to do your tax paperwork. This is where hiring an accountant will come in handy!
Are you eligible for any valuable tax credits for this year? It’s worth your while to consult with a tax accountant to find out, especially since credits reduce your tax obligation dollar for dollar. Credits are available for all kinds of things, including education expense and the care of dependents.
I don’t have a company so I can’t afford an accountant. That’s a common misconception. Accountants can help individuals in many ways, such as developing a personal financial plan. An accountant can examine your finances and make recommendations on how to save more money, for example.
A common tax mistake made in the United States is the claiming of ineligible dependents. To claim someone as a dependent, the person must be a US citizen, US resident alien, or US national. A dependent can never be your spouse.
Unfortunately, many of the people that work for tax preparation services don’t have the extensive tax experience you think they do. When you need actual guidance, not just someone reading off a computer screen, we’re here for you.
When you're wondering whether you should pay an accountant to do your taxes, it's important to consider the value of your time. While a complicated tax situation might take an experienced accountant an hour or two to sort out, it will likely take you much more time to figure it out on your own.
Tax preparers charge a set fee for assisting with your taxes. It's not legal for them to charge you a percentage of your refund as their fee.
One of the biggest problems for small business owners is passing control of vital parts of the business to someone else. Entrepreneurs feel like super heroes but when it comes to letting go of specific parts of the business it may be very hard, but needed.
In addition to the services of an EA agent, what is your second best protection against audits? Detailed documentation – for all tax related items but especially for deductions. As deductions are usually the source of audit flags, thorough deduction documentation can smooth the audit process.
Unless you think paying more than your fair share of taxes is a way to help the federal government reduce the federal debt, you are surrendering more of your hard-earned income than you need to. An experienced accountant knows what deductions you are entitled to take.
Why choose an Enrolled Agent for tax services as opposed to a Certified Public Accountant? An Enrolled Agent is only focused on taxes – so an EA can offer a very specialized service in this niche environment. Whereas a CPA, who offers a variety of services, may not always have complete tax info or education.
Before you sell real estate or stocks, it's smart to consult with your tax accountant. He or she will be able to advise you on the best way to do this so you can minimize your tax liability on the money you make from the sale.
Fun Fact: "Bookkeeper" and the words derived from it (bookkeeping etc.), is the one and only accounting-related word in the English language with 3 consecutive sets of double letters.
Getting an envelope in the mail from the Internal Revenue Service isn't usually fun for anyone. The good thing about hiring an enrolled agent as your tax professional is that they can deal with any correspondence, so you're free to focus on day-to-day business matters.
According to a survey by an online accounting company, one of the most common mistakes for small business owners with their tax returns is mingling personal and business deductions. One of the risks of doing that is triggering an audit by the IRS.
Should you be working with an EA accountant? Yes, if you have to prepare and submit out-of-state tax returns. EAs are the only tax preparers with an unlimited authorization to prepare tax returns and advise and represent taxpayers in every state.
As a small business, who do you owe taxes to? There are various tax returns for all the different agencies, which include Local county or city, state, and federal. Some other areas you might not consider but still owe would be district, employee, property, sales, and payroll.
When thinking about using an accounting firm, weigh it against the costs of performing the same tasks yourself. Consider time spent on paperwork, research, and education, and compare it to the cost of having an outside agency do the work. You will probably save money in the short and long-term.
For more than 40% of small business owners, bookkeeping and payroll chores are two of the most dreaded tasks. They dislike the complexity of compliance, changing regulations, administrative headaches, and time it takes away from their business.
A certain percentage of the taxpayers in the United States are required to pay the alternative minimum tax, or AMT. If you meet the criteria for this, it's a good idea to seek out the services of an experienced tax accountant. AMT generally makes your taxes more complicated, so a professional's help is often needed.
Keeping an emergency fund of cash on hand will help cushion anything unexpected that comes up in the business. It’s recommended to keep at least 2 months of operating expenses on hand to protect your business.
If you need more time to gather information, it isn’t difficult to get an extension on your personal income tax return. Ask your accountant about filing IRS Form 4868 to delay your return for about six months. Note that your tax payment is still due on April 15.
