How Can a CPA Make Small Business Tax Preparation Easier?

Tax Preparation

Owning and launching a small business can be highly rewarding for many aspiring entrepreneurs. It lets you become a boss of a humble establishment, gain creative control, and can offer financial rewards. This new venture allows you to connect with your community and impact your neighbors’ lives. 

However, being a responsible business owner also means preparing for the yearly tax season to avoid hefty fines. This time can be overwhelming and time-consuming. For this reason, you should enlist the help of a reputable, certified public accountant (CPA). They’ll have the right expertise and knowledge to file tax documents correctly.

If you want your small business to save more time and money, this article will explain how a reliable CPA can help you during this dreaded time.

Is Small Business Tax Preparation Difficult?

While it was previously possible to handle your tax filing when you started your small business, filing taxes has become increasingly complex as your establishment grows. The process has also become much more difficult with multiple sources of revenue, contracts with independent workers, and various expenses. For those reasons, small business owners need a CPA to ensure they submit their taxes correctly and on time. 

What Are Your Tax Filing Options?

While you can file your taxes or use tax software, these methods can be stressful and challenging, mainly if you already handle too much responsibility or don’t know how to use the software properly. 

However, you can partner with an experienced tax professional if you’re not confident in filing your taxes because they’ll do your taxes correctly and by the ever-changing laws. CPA firms are also knowledgeable and have teams of experienced professionals familiar with tax laws and filing requirements. Moreover, partnering with a reliable accounting firm grants you access to decades of tax preparation experience. 

What Can You Expect from a Firm’s Small Business Tax Preparation Service?

A reputable CPA firm will check and recheck your tax return with computer software and electronically file your return for faster refunds. They’ll also adjust your payroll withholding to get more money back weekly and show you how to limit your tax liability for next year. 

2 Pros of Hiring Professional Tax Preparers 

Here are two benefits of letting professional tax preparers file your small business’s tax returns. 

1. Tax Preparers Can Help You Save Time and Money

You can spare yourself from time-consuming and frustrating situations by hiring a CPA. This expert knows the ever-changing tax regulations and can ensure you maximize all applicable credits and deductions. 

They can also save you from potential mistakes that could lead to hefty penalties. Moreover, letting a CPA do your taxes can be more cost-effective in the long run. 

2. Tax Preparation Fees Are Deductible

If you place your deductions on your tax return, you can include any associated fees, mileage, or other expenses. Your accountant must specify these fees and costs as “miscellaneous” deductions on the 1040 form. 

2 Cons of Working with Professional Tax Preparers

Like other things, hiring CPAs also has its disadvantages. Here are some potential drawbacks. 

1. Hiring Tax Professionals Can Be Expensive

The costs of letting a professional do your taxes can vary, but it’s usually a worthwhile investment. 

2. Anybody Can Claim to Do Tax Prep

Be careful of anyone who claims they can do your taxes but lacks the qualifications. You should also always check the credentials of anyone preparing your taxes and watch out for outsourcing tax preparation overseas. Moreover, stick with a trusted, US-based firm to ensure your information is safe and accurate. 

Becoming a Responsible Business Owner

Taxes are a dreaded part of running a small business, but paying and filing them on time is necessary to avoid legal trouble. You can be a more efficient entrepreneur by working with a reputable CPA. 

If you need a reputable CPA in Framingham, MA, to help with your small business tax preparation, work with Ash CPA! Our accounting firm delivers professional services at affordable costs. Contact us now, and let’s help you run a more efficient and responsible establishment!