Do I Need to Work with an Accountant?Letizia
Why do a large percentage of businesses fail? Though entrepreneurs and business owners are smart people, it is impossible for them to take care of all the aspects of their business on their own – particularly the financial management part. In fact, poor financial management is a key reason for a lot of businesses to fail within the first few years of their launch. If you run a small business or plan to start one soon, you should never underestimate the significance of working with an accountant. Through their experience and sound knowledge, a professional accountant will bring a lot more to the table than you think they can.
While you may want to do your taxes on your own, going the DIY route in this regard can result in a heavy financial blow.
Regardless of the size of your business, tax management and preparation are tasks that require the assistance of an experienced accountant. Unless you seek the services of a tax accountant, you will always run the risk of facing discrepancies with your money management getting into legal tangles.
Pros and Cons of Using Tax Software
While tax software may offer you the ease of doing your own taxes, they lack human touch and cannot handle complicated tax issues. An accountant can suggest ways to maximize tax savings, but a tax software cannot.
While a tax software can simplify the job of tax filing, it does have its limitations. Like a tax accountant, your tax software will not offer you advice on how you can save on your children’s education; nevertheless, a tax accountant will always be there to address your tax-specific concerns and answer your questions.
An Accountant Does a Lot More Than Just ‘Tax Filing’
Many business owners think that the job of an accountant or a tax professional is no more than just tax filing. This is not true.
When deciding whether you should work with an accountant or not, first, you need to understand the range of skills that the accountant can bring to the table. Once you are aware of all the benefits that an accountant has to offer, you will be ready to invest in accounting services.
The services of an accountant include:
- Maintaining the accuracy of all financial documents
- Helping you comply with accounting practices and tax laws
- Generating important financial reports
- Preparing tax returns and filing taxes in a proper and timely manner
- Identifying financial issues and recommending solutions
- Offering guidance on profit maximization
- Assessing risk analysis
Once you bring on board an accounting professional, your financial management will start to improve. In fact, it is legally incumbent on accountants to work with for their clients with utmost honesty.
Do not think of accountants as professionals who simply crunch numbers. Though working with and managing financial records is a crucial part of their job, they should be seen as valuable assets to a company. You can always look up to an accountant as an expert who will not just help you with the accounting and taxes, but also guide you along the path of financial success.
Do You Have the Time to Do Your Company’s Accounting?
When you are running a startup or a company, you will have your mind racing in millions of directions at any given point of time. From dealing with the clients to managing the employees, there is plenty to take care of.
If you have a really busy schedule, ignoring the tasks that require your attention on a day-to-day business can hurt your business. What is important for entrepreneurs and business owners is to focus on those tasks that they excel at and leave the rest for other people to do. If you are like most business owners, accounting is not one of your specializations. That is why it makes complete sense to hire someone who has multiple years of experience in accounting.
You will feel great relief as soon as you bring a professional on board. Then, you will not need to worry about your company’s financial management, tax deductions, tax refund and tax issues anymore. The best part is that you will now have more free time to focus on things you are best at.
Benefits of Having a Tax Accountant for Your Business
Partnering with a tax accountant is one of the wisest decisions you make for the success of your business. Given below are the key advantages of working with one.
Maximize Your Tax Deductions:
During tax preparation, one key concern for all businesses is to get the most out of tax deductions. Unless you have experience in this field, you can easily ignore or miss out on potential deductions that you can be eligible for throughout a fiscal year. A tax accountant will keep you up to date with all the deduction benefits you will be entitled to. When you have this information, you can maintain a record of all such expenses properly.
Avoid Tax Penalties:
In the absence of an accountant, the chances of missing the tax filing deadline will increase. Delayed returns can result in tax lawsuits and heavy tax penalties. Working with a tax professional will ensure that all your tax payments are made on time.
Prevent an Audit:
The only way to avoid a tax audit is to fix issues before they catch the eyes of the IRS officials. This means your tax preparation and return filing should be done properly so that no discrepancies arise in future. Hiring an expert will help you complete the tax forms in an error-free manner and avoid other mistakes which could cost your company a tax audit.
Keep Your Business Organized:
When running a business, you will need to take care of a range of things including rentals, utility bills, loans, investments, etc. Working with an accountant will keep all these things in order. In addition to these, he/she can also manage your payroll system.
Handling your own accounts is just too much work. It does not only consume a lot of time, but it can also stress you out. You will need to spend hours on going through all the tax laws and regulations. Having an accountant means you can save yourself all this time as he/she will handle tax payment and all the tax-related issues in an effective manner, so you will have peace of mind.
Plan Future Projects:
Think of the accountant as your long-term partner and a financial advisor who can help you make important business decisions. If you are planning to initiate a new business project, you can always turn to your accountant for financial insights for evaluation.
The guidance you receive from this person could mean the difference between failure and success of your business. Since accountants have experience working with a wide range of businesses across industries, they are loaded with valuable insights that you can use to your benefits.
What is the Cost of Hiring a Tax Accountant?
The one-size-fits-all approach does not apply to accounting and tax preparation. This is because the tax situation of every company or business is different. For the same reason, the cost of hiring an accounting professional varies as per the complexity of the tax situation. Also, the rates of accountants will also vary depending on specialization and how much experience they carry. The best part about hiring them is that you can hire them either full time or part-time. The cost of hiring one normally ranges between $145 and $450.
Tax professionals charge a fee based on what your exact tax filing needs are and what tax forms need to be filed. Having an accountant for doing your taxes means you will also get a number of other benefits such as accounting, data management and advice on tax deductions among others. In fact, you can reach out to a tax professional anytime throughout the year to seek answers to your tax-related questions.
Do You Have Additional Questions?
If you are a business owner planning to streamline your accounting and tax preparation with the expert assistance of a tax accountant, feel free to give a quick call to SCL Tax Services. Based in the Bronx, New York, we offer a range of services including business taxes, income taxes, accounting, bookkeeping, tax preparation and more. Our highly competent team of tax professionals consists of enrolled agents (EAs), certified acceptance agents (CAAs), tax accountants, and bookkeepers.
Schedule your free 15 minute consultation with us and find out how we can help you prepare your taxes and maximize your tax savings.