Many businesses will do their own taxes for a number of years before they decide to hire someone. One of the biggest reasons they turn to a professional is because there are more and more factors each year. Are you wondering why you need to hire a tax professional this year? This could be the year you save the most in taxes, breeze through April 15th stress-free, and feel confident in your results. Keep reading to learn more about why your Phoenix business needs to hire a tax professional this year.
The tax law has taken on many changes for the 2020 tax season
Many companies have taken on more assistance than usual through the CARES Act initiatives, which makes for a confusing tax year. As tax professionals, we have kept up to date with new changes and have been able to shift and note the changes immediately. Not knowing how to properly account for assistance or new tax breaks could be detrimental to your tax season. The last thing you want is for your assistance to be unforgiven (if forgiveness was possible), or to wind up being audited by the IRS during an already stressful year.
Tax professionals like ourselves handle these situations every day and understand the steps that must be taken to account for funding correctly. This might take you a long time to figure out, but for us it’s rather quick because we do it every day.
You need to hire a tax professional this year to correct mistakes you might’ve made in the past
As we said before, many businesses take on setting up their business the DIY way. There’s nothing wrong with this! It’s just that you might have made mistakes without knowing it, and those mistakes will come back to haunt you during tax season. If you are wanting to DIY your business set up, we suggest checking out our course Business Savvy Influencer which will take you through all of the preliminary steps to getting your business started and accounted for correctly!
You need to hire a tax professional this year because tax professionals can easily pinpoint the areas where you possibly went wrong, like choosing the wrong entity choice for your business. Using our course & later on utilizing a tax professional will ensure that you have set yourself up for success so that there is little to nothing that needs to be “undone” or fixed.
Tax professionals can remind you of important deadlines and requirements, like withholding tax from your earnings.
You need to hire a tax professional this year if you are having a hard time keeping up with all of the intricacies that go with accounting for taxes throughout the year. Something most small businesses forget about at the beginning is setting aside tax withholdings from their wages so that they can pay their income tax.
There are severe penalties for not paying your taxes for your small business. You can typically expect to pay a penalty to the IRS of 0.5 to 1 percent per month to an income tax bill not paid on time. This penalty is computerized and added automatically whenever a return is filed, without the full payment amount, or for late payment. To make matters worse, you will pay even more for not making a payroll tax deposit on time. Tax professionals can keep you up to date on these deadlines so that you don’t deal with penalties, which is why you need to hire a tax professional this year.
Most of all, tax professionals can help you invest in your company and max out deductions
Tax professionals might be aware of more opportunities for deductions than the general public because this is their job! They can help you make choices to invest in yourself and your company with all of the deductions you are entitled to. This could include using depreciation rules for your benefit, claiming startup costs, claiming a home office deduction, specific, and others. In order to learn about all of your possibilities, you need to hire a tax professional this year!
If you’d like to make the most of your tax year, contact us for more information on our tax services. We might be biased, but we truly believe that you need to hire a tax professional this year to make your life 100 times easier! You can also check out our tax page where we share a FREE tax organizer to help you get situated for the incoming tax year!