There are so many reasons that small business owners face benefits when they turn their taxes over to a CPA to prepare them instead of attempting to do them on their own.
Let us count the plusses:
#1 – The Tax Code Can Be Complex
First off, the IRS code is famously difficult to understand, not only consisting of lots of sections and tricky language, but rules that often change the game from year to year.
#2 – TurboTax Alone Can’t Represent a Small Business
Many small business owners that make the transition from doing their personal taxes with programs like TurboTax think they should simply remain doing it that way when they open their own business. However, during an audit or other trouble, Turbo Tax doesn’t represent the taxpayer in the same way that a CPA who has signed on the dotted line will, unless perhaps they are using TurboTax CPA Select.
#3 – CPAs Know More and Tend To Have More Experience
If you’re dealing with a knowledgeable and great CPA that’s well versed and experienced with a plethora of clients, they will be able to draw on that knowledge to help you in filing your taxes.
A CPA that’s on top of their job will be able to tell you about deductions you didn’t know you could take, and assist you in learning the benefits over having the IRS view your company as a C-corporation or an S-corporation.
Some of them have guided clients through audits, and have seen how the IRS reacts in a variety of instances, and therefore experienced CPAs should be able to correctly advise you over whether or not you can deduct any of your household expenses for your home-based small business, or any of your fuel if you’ve used your vehicle to travel on business.
#4 – They Might Be Worth the Money for Non-Accounting Folks, Plus People Good With Numbers
Hiring a CPA can be one of the best choices a small businessperson can make, especially if they are the type of person who hates numbers. For example, a graphic design illustrator may be great with creating vector images, but absolutely horrible at anything mathematic.
Allowing a CPA to prepare the artist’s taxes lets the creative person focus on what they love to do, and not spin their wheels for hours trying to figure out complicated tax code.
Even people that are wizards with numbers and love creating spreadsheets and complex formulations of their book sale numbers or online income still may get a glazed look when it comes to reading the “pursuant to section 401(k)” kind of IRS-speak.
Preparing taxes is an art unto itself, best left to those good at it.
#5 – Their Fee is Tax Deductible
Perhaps one of the last major benefits of having a CPA prepare your small business taxes – and there are many positives to making that choice – includes the fact that in many instances, their fee is tax deductible.
But don’t take my word on that. Ask your CPA; they should know for sure.
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