Signs You Need a Tax Accountant When You Own a Small Business
When you own a small business, you are no doubt constantly deciding whether you’ll handle certain tasks on your own in order to save money, versus hiring someone else, like tax accountants. When it comes to your taxes, you may have been filing them yourself for many years or may assume you can just do this with a software program and be done with it. While this may be very inexpensive, it can actually cost your company money in the long run. There are other advantages to having a tax accountant handle your filing for you; note when this may be the right choice for your business.
1. You’ve expanded into new areas
If your business has recently expanded into new states, territories, counties, and so on, you want to hire a tax accountant. The tax laws in these areas may be very different and if you overlook certain deductions or fail to file certain paperwork, this can be costly. If you’ve expanded at all in the past year, have an accountant handle your taxes this year.
2. You’ve taken on investors or new partners
Investors and partners often expect certain reports and financial paperwork that go with the statements you use at the end of the year to prepare your taxes. Having a tax accountant prepare these statements and reports can mean a better understanding of your business as a whole. Investors especially expect these types of statements, and if they’re not prepared properly, you may actually lose those investors and, in turn, the value of your company may fall.
3. Tax laws that affect your business have changed
When preparing your taxes, you may see that your software program prompts you to add in certain deductions that you’re not familiar with, or you may note that certain deductions you claimed last year are no longer being prompted. You may notice that your tax bill suddenly seems much higher. No matter the change, it’s best to consult with a tax accountant. He or she will be familiar with those changes and how they affect your business and how to file your paperwork accordingly.
4. You’ve experienced rapid growth
While it’s good to make more money from your small business, you want to ensure that you reduce your tax bill as much as possible. A tax accountant can examine all your receipts and other paperwork and advise you on how to protect as much of that new profit as possible.