Let’s begin with a simple question: who prepares your company’s taxes? Many small business attempt to go it alone to cut costs, which can be problematic in a number of different ways. Many times, you do not have sufficient time to prepare the documentation properly, so you opt for shortcuts that result in your company getting audited by the IRS.
Here are some of the many benefits that a tax professional can bring to the table for you and your business.
Understanding Tax Liabilities Based on Company Types
Depending on the type of business you own, your tax liabilities can differ quite a bit. For example, a C corporation has to pay a flat tax of 21%, while the percentage for a pass-through entity is determined by how much the owner is taxed. These are just two examples. There are many others, like sole proprietors, LLCs, and many more, all with different tax rates.
Staying Abreast of Tax Code Changes
In addition to understanding tax liabilities, a tax preparer also keeps up with any changes that the federal, state, or local government makes to the tax code. These codes are updated continuously, with new versions rolling out yearly. Any changes may affect the amounts that you pay to these entities quarterly or at the end of the fiscal year. If you are not constantly brushing up on your tax code, you could end up paying either too much or too little in taxes, leaving you open to penalties and levies. This is yet another reason to enlist the services of a tax professional.
Ready to Hire a Tax Professional?
At Enterprise Consultants Group, we handle tax return preparation and have a solid and in depth understanding of tax law. Our expert team will work diligently to help keep all of your business’s tax documentation and payments in order, leaving you to do what you do best – run your business!