Avoid Costly Mistakes And File Your Small Business Taxes With A Professional Tax Preparer

17 March 2023
 Categories: , Blog

Do you have a small business? Whether you opened it within the past year or have been running the company for several years, staying on top of your taxes is a must. If you fail to file taxes or don't report information accurately, you face costly fines and penalties, which can even lead to jail time. Because you don't want to risk losing your business and suffering significant consequences over tax-related issues, it makes the most sense to hire a professional providing tax preparation services to ensure you're filing correctly, staying compliant, and getting as many deductions as possible to reduce what you owe.

#1. Make Your Quarterly Payments with Ease

As someone who runs a business, it's typically better to make quarterly tax payments based on the income you bring than to wait until the end of the year. This is because you could potentially owe thousands of dollars after filing taxes, but making quarterly payments eliminates that problem for you. Your tax preparer would determine how much you should pay to the IRS based on earnings and deductions, helping you avoid the surprise of finding out you need to pay a large sum by a fixed period.

#2. Get the Best Tax Deductions

You may be eligible for deductions that you didn't even know about, which means there could be ways for you to save on your tax liability. If so, you would spend less on taxes than usual based on the deductions your tax preparer could find for you. Although these deductions vary from one small business owner to another, they can include things like rented office space, phone and internet, and other types of business-related expenses you may have had over the years. The best way to get these deductions is to keep receipts and bank statements for your tax preparer to review before filing your taxes.

#3. Receive Help with a Business Audit

The IRS randomly chooses to audit individuals who've filed their taxes each year. If you're being audited, you may feel stressed over the situation and worry that you won't be able to provide all the information the IRS requests. However, with your tax preparer's assistance, you can gather the necessary documents, fax them, and get through the audit with minimal stress.

You don't want to make tax-related mistakes when running a small business because they can cost you much more over time. To avoid encountering potential tax problems, hire a tax preparation service to help with things like filing your taxes, making quarterly payments, and even getting through an audit.