Outsourcing your business tax preparation can be a huge boost to your bottom line. Any business owner will agree that business tax preparation can be a complex and time-consuming process, and it’d be wise to hire a tax consultant instead.
Outsourcing these services rather than using an in-house team may seem like an odd choice to some business owners, but there are many benefits to hiring an outside firm to handle complicated tax issues.
1. Expert-level tax preparation
Taxes are a mandatory part of business operations. However, many companies lack the necessary personnel to sufficiently prepare their taxes. A business’s tax preparation team must be comprised of individuals with an expert understanding of tax laws and regulations. Hiring a dedicated employee or team to handle a company’s tax preparation can be extremely expensive.
Outsourcing your business’s tax preparation enables your company to reap the benefits of expert-level tax preparation without the hassles and costs associated with hiring and retaining a permanent employee or team member.
2. Staying compliant with state and federal tax codes
Having a tax professional prepare your taxes helps ensure that you are following all of the required tax guidelines and that you are taking advantage of every deduction and credit possible.
A tax professional will also know if there is a new regulation that may affect your business, such as a new ruling about what qualifies for a home office deduction or how the Affordable Care Act affects the taxes you pay.
3. Helps avoid unexpected tax penalties
One of the biggest benefits of outsourcing your business tax preparation is that it helps prevent unexpected penalties and fees. There are hundreds (if not thousands) of tax laws, provisions and credits that you need to be aware of in order to make sure that everything is done correctly when filing your taxes.
This can get confusing if you don’t have experience with filing taxes for your type of business. A professional tax service will help ensure that all of the necessary forms are filled out correctly so that you don’t get hit with unexpected penalties or fees.
4. Tax planning for the future
Knowing what’s ahead of you is key to any strategic plan, and with a tax professional, you can do just that. Tax experts will look at your past taxes and financial statements to determine ways that you can save in the future.
They’ll also use our experience to provide you with tips and tricks on how to make sure that your business remains tax compliant. For example, it could be recommended that you switch from cash accounting to accrual accounting.
5. Save money and time
You may think that outsourcing your tax preparation is more expensive, but in many cases, it will save you money by reducing the amount of taxes you pay. An experienced tax accountant understands the ins and outs of what can be deducted, which credits are available, and how to complete the return to minimize your tax burden.
This can be particularly important if you need to file multiple tax returns for different states. A professional also knows how to organize your documents to make the return process faster and easier.
Contact us to get started!
Contact Abbo Tax CPA for your professional business tax preparation. Our two CPA tax preparers have over thirty years of combined experience to take your business through all the intricate nuances of business tax planning and preparation, including changes required by new legislation, such as the recent Tax Cuts and Jobs Act (TCJA), as well as more day-to-day tax matters like audits, related litigation, and more.
