As an upcoming entrepreneur, you are often tempted to skip confusing and tedious adherence to tax guidelines by staking claim that your business is a rather small mom-and-pop shop with minimal profits. While your business is welcome to boost the economy, they are also subject to tax considerations that are often very difficult to comprehend or even keep up with.
Certified Public Accountants (CPAs) are trained and experienced in the rules and regulations of taxation and can help navigate such challenges with professional ease. The five most important reasons for your business to consult a CPA for taxes:
Always Plan Ahead
Tax laws defining your role as business owner, change every year, so do consult a CPA before end-December, to receive tax planning suggestions. With recommendations given, important financial decisions for the next tax year are taken, without subjecting your company to costly penalties. Always remember that CPAs cannot implement tax law changes, but can guide you by keeping your business on track within IRS and state government tax guidelines.
Avoid Overpaying
Laws relating to tax and business returns are confusing to navigate, so it becomes easy for new and seasoned entrepreneurs to make mistakes about what they owe, accidentally. Additionally, the IRS guidelines on how much can be claimed for various deductions, are rather challenging to decode. CPA consultations helps you understand the taxes to be paid and assess if your business is over-or underpaying taxes. Tax advice from a CPA can explain implications of decisions and offer recommendations for future years, as new regulations can impact business.
To Protect Your Company’s Bottom Line
Tax deductions are critical for business success and your CPA maximizes your tax-deductions while minimizing overall tax burden enabling you to pay legitimate tax dues only. You must understand tax laws relating to employee retirement plans which impact your company’s profits and a CPA helps save taxes by analyzing the numbers for you. Laws on retirement plans and taxes keep changing, so stay up-to-date with latest changes.
To Protect Your Company’s Future
Though it may not seem a possibility, the government’s ability to identify and shut down your business, remains a threat. If you evade taxes, the IRS will contact you directly, and they will not refrain from playing hardball. A CPA helps in defending you from possible legal action by assisting you prepare for audit or filing criminal charges against IRS employees if they continue harassment. Though you file your taxes as long as you have a license as a sole proprietor, the number of tax regulations involving business returns, can confuse even the most meticulous of bookkeepers. A professional CPA helps protect your business from mistakes and ensures that you are IRS-compliant. Analysing how tax laws affect company profits, is essential for organizational success, and a CPA helps achieve your goals.