Benefits of Hiring a Tax Professional for Your Business

Why you need a professional to handle your business’s taxes.

10/4/2017 10:45:00 AM
Benefits of Hiring a Tax Professional for Your Business

Paying taxes and filing tax returns are stressful adulthood requirements, and if you own your own business, your tax responsibilities and stresses double. While you might feel confident handling your personal tax returns on your own, when it comes to the nuances of your business tax filings, it’s a smart investment to seek professional help.

Save time

Time is money. And, as a business owner, you know that all too well. Do you really want to sacrifice your time, which in turn translates into money, preparing your business’s tax return? Although delegating this task to someone who is educated about the ins and outs of this process might cost you up front, isn’t knowing that your taxes are filed correctly and your business is safeguarded from the IRS, worth the investment?
According to contributing writer Kay Bell, the IRS estimates that Form 1040, which 69 percent of people use to file their individual returns, requires at least 16 hours to finish. Filing a tax return for your business surely will require even more time. “If you use a tax preparer, you’ll also have to commit some time to gathering tax statements and other materials. But, once you deliver the necessary documents, you’ll have more time for other tasks,” explains Bell.

Protect your present

If you are not a trained accountant or tax professional who specializes in tax preparation, you might miss some vital tax write-offs to save you money as well as new rules and regulations that might cost you money.
According to U.S. News & World Report contributor Susan Johnston Taylor, “Many small business owners don't consult a tax accountant until a few years into starting their business. However, your first-year tax elections can impact your business's tax filings in future years, so it pays to start things on the right foot and grow from there, even if you're a sole proprietor.”

Plan for the future

Enlisting the services of a tax professional offers you the opportunity to speak with someone who can help you plan for the financial growth of your business. “While comprehensive tax software can handle these more complex tax situations, it cannot talk with you about your plans that could affect your taxes,” reports Bell. “A tax advisor can offer insight into tax law changes that might affect you and whether you should make certain moves now or wait.”

Share the responsibility

Delegating the responsibility of filing your business taxes to a professional affords you important back-up. According to Bell, the IRS needs someone to contact with questions, and if you are the sole responsible party for preparing the filing that means the IRS could have you on speed dial. Bell suggests asking yourself if you have the time, energy and resources to handle inquiries from the IRS.

“By filling out a line on your 1040, you can direct the IRS to bring any questions about the filing to your tax preparer. If you want to go further, you can give certain kinds of tax preparers—enrolled agents, CPAs, attorneys—power of attorney to represent you before the IRS,” reports Bell.
The complexities of filing tax returns on behalf of your business require specialized training and know-how, and by hiring a qualified tax professional you will be prioritizing your business’s financial health—past, present and future.

Published by North Shore Bank. Includes copyrighted material of IMakeNews, Inc. and its suppliers.

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