For some business owners, especially those operating small businesses, hiring an accountant, or more specifically a tax accountant, may feel like an unnecessary expense. Here are some reasons why this is a financial fallacy:
1. It saves time.
Owning a business takes so much of a person’s time. From budget planning, marketing, and actual selling of goods and services, a person can only do so much. By hiring a tax accountant, the business owner will do what he or she does best: run the business. Time for tax concerns will be handed over to an expert.
2. An accountant provides invaluable advice.
Part of an accountant’s education is navigating through complex tax problems and make a business pay for them less. The savings that a business owner gets from an accountant’s informed advice will prove invaluable.
3. It helps a business owner avoid costly mistakes.
A business person can make an error, such as unintentionally giving the wrong income amount for taxes, simply because his or knowledge of taxation is not comprehensive and let’s face it, the entire tax process can be confusing.
Unfortunately, the tax bureau will not overlook this error. A tax accountant knows how to navigate the process easily which can save their client money, and prevent mistakes.
4. Tax preparation and filing is a complicated process.
Paying taxes is a cumbersome affair. One has to fill in the right form, provide numerous facts about income, accounts, payroll, and expenses while running their business. Unburden yourself from this stress and let a professional get it right the first time.
5. A tax accountant can spot tax exemptions right away.
A person can deduct certain expenses from his or taxes and may not know it. When there are people who depend on a person financially even a relative who is not that person’s child, the money one spends on them can lessen his or her taxes, for instance. What a particular personal expense is tax-deductible a tax accountant can know immediately.
6. Stay updated with new tax laws
Social security tax for U.S. citizens increased in 2013, 2014, 2015 and 2017. Some may not be aware how new policies affect them. It’s part of the tax accountant’s job to be well-informed about changes in tax laws. With his or her help, the business owner also gets updated.
7. A tax accountant can be reliable beyond taxes.
A tax accountant knows a lot about important financial concerns besides taxes. He or she can provide business advice, asset management, and even retirement plans. This financial expertise means a person has not just hired a tax accountant but a learned business partner as well.
It is not an exaggeration to say that a tax accountant is not just an unnecessary expense but also an indispensable person in the business. By hiring a reliable one from a well-reputed firm like MKS&H, a person makes an informed business decision.