5 Valuable Benefits of Hiring Tax Preparation Services
It’s every law-abiding citizen’s responsibility to pay taxes. Without them, the government won’t have the funds for the services we rely on, such as infrastructure and education. Of course, this is a responsibility shared by everyone, including small business owners. They can get various benefits when they file their taxes earlier, such as tax returns.
Tax returns are refunds that business owners receive from the government after they have overpaid on their taxes. While filing taxes is a straightforward job, not all business owners know how to do it because they’re too busy running their business or think it’s nothing more than an unnecessary expense. This way of thinking is dangerous because delaying will only stress you out, and you may also get penalized.
If you don’t see the value of hiring a professional tax preparation service, here are some reasons why you should:
#1 – Complete Understanding of Tax Rules
You may think filing taxes is as easy as adding your income and subtracting your business expenses. However, there’s more to it than that. The government imposes different tax rules for different types of businesses. For example, if you run a small business, you’ll be taxed differently than a corporation. A tax preparation service will ensure you follow all the rules and regulations, so you don’t have to worry about getting penalized.
#2 – Minimize Business Taxes
Business taxes are different from personal taxes because there are numerous deductions you can take to lower your tax bill. A tax preparer will know which deductions you qualify for and how to maximize them, saving you a significant amount of money.
For example, if you have a home office, you may be able to deduct a portion of your rent or mortgage, utilities, and other expenses. If you use your vehicle for business purposes, you may be able to deduct mileage.
#3 – Tax Breaks
Tax breaks differ from deductions because they lower your taxable income rather than your tax bill. This can save you significant money, as your tax bill is calculated as a percentage of your taxable income.
Many tax breaks are available, and a tax preparer will know which ones you qualify for and how to maximize them. For example, if you have a home office, you may be able to take a tax break for the percentage of your home that is used for business purposes. If you are self-employed, you may be able to take a tax break for health insurance premiums.
#4 – Minimizes Tax Liabilities
A tax preparer will also help you minimize your tax liability. This means they will help you calculate what you owe in taxes and then work with you to pay as little as possible. This can save you significant money, as you will not have to pay interest or penalties on late taxes.
#5 – Saves You from Getting Audited
An audit is where the IRS reviews your tax returns to ensure you have reported your income and paid all of your taxes. This can be very stressful, as you must provide documentation to support your tax return. You may be subject to penalties or interest if you don’t have all the documentation. A tax preparer can help you avoid an audit by ensuring that your tax return is complete and accurate.
Hiring a Tax Preparer
When hiring a tax preparer, you must consider the following:
The best tax preparers will have a lot of experience preparing taxes. They will be familiar with the tax code and know how to minimize your tax liability. They will also be able to answer any questions about your tax return.
Accounting Software Used
Most tax preparers use accounting software to prepare tax returns. The software should be up-to-date and easy to use. The preparer should be able to show you how to use the software and explain any features that you are not familiar with.
Tax preparation as an occupation doesn’t require a license. However, a preparer licensed with the IRS can represent taxpayers during an audit. The IRS offers this through a voluntary certification program for tax professionals.
Above all else, you should get your money’s worth when hiring a professional tax service. A tax preparation service will likely charge you based on the number of forms or the time it takes to complete your return. The price may be a set fee or an hourly rate in such a case.
Hiring a tax preparation service is a good idea if you don’t feel comfortable preparing your tax return yourself or if you don’t have the time. An expert can help you get the maximum refund you’re entitled to and can help you avoid trouble with the IRS. When you do, you can focus on your business and reap the rewards of possible refunds. Ash CPA provides top-quality tax return preparation services. We understand the urgency of preparing your taxes, so our professional accountants will ensure yours is completed and filed promptly for an affordable price. Reach out today via (617) 462- 6651 or [email protected] and allow us to help you!