7 Key Benefits of Hiring a Professional Tax Service for Your Business

Does the phrase “tax season” instill you with a primal fear? Taxes are hard enough for personal filers. But as a small business owner, filing your return exists on another level of frustration.

You know that you could hire a professional tax service. That said, you’re not convinced they’re right for you or your small business. To keep things simple, I’m just going to come right out and say it: They absolutely are.

Stop stressing every time tax season rolls around. Here are the 7 major benefits of hiring a professional tax service.

1. File Accurate Returns

It’s no secret that taxes are complicated. While self-filing programs may be functional enough for the average person, they aren’t a safe option when it comes to complicated business matters.

And even if they were, there’s a high chance of error. After all, accurately using a tax self-filing program relies solely on your business and its bookkeeping. There won’t always be a paper trail of 1099-K forms to rely on.

For all these reasons and more, it’s best to turn to a professional tax service. A certified public accountant knows the ins and outs of the tax system. You can rest assured that your return will be accurate, lowering your risk of a time-consuming audit.

2. Save Time

Speaking of saving time, did you know the average business spends 24 hours or more working on its return? That’s time better spent elsewhere.

Consider, for example, that you may pay yourself a salary of $30 an hour. You could lose a total of $720 by working on the tax return rather than putting time into something that earns your business money.

3. Earn More Than You Spend

Hiring a CPA to itemize your taxes will likely cost less than you pay yourself to file the return. In that sense, you stand to make money by hiring a professional tax service.

But that’s not all. A professional CPA can help you maximize your return. While you may not be able to take advantage of all the tax deductions available, a CPA definitely can.

What does this mean for you? You could receive hundreds of dollars more on your return than if you go it alone. The savings only become more substantial as the size of your business grows.

No matter how much a tax professional costs you, there’s a great chance you’ll earn more than you spend on the service. The fees and experience depend on who you choose. Read this article to learn about choosing a tax preparer right for you.

4. Deduct Professional Tax Service Fees

If you’re still stuck on the cost of hiring a professional tax service, there’s one last monetary benefit to consider: The fees are completely tax-deductible.

That’s right. If you use an accountant, CPA, or financial adviser, you can deduct these expenses. This is also true of any bookkeeping expenses you may incur. Personal filers aren’t eligible for this deduction, which means it’s specifically aimed at helping businesses like yours get their taxes in order.

Most businesses pay around 20% in taxes. Since hiring a CPA is tax-deductible, you can pull this amount from the total taxable income at the end of the year. Or, in short: A professional tax service costs about 20% less than its apparent price.

5. Enjoy Peace of Mind

Let’s be real for a moment: Taxes suck. Although you stand to save big by using an accountant, let’s say you won’t.

It’s still worth it.

How much is your peace of mind worth to you? If you panic or stress out when tax season comes along, that’s a great sign that you should hire a professional tax service.

Sure, it could cost you — though there’s a good chance you’ll come out with a net positive. Yet for many business owners who struggle to keep their books in order, their sanity is worth the cost alone.

6. Receive Support During an Audit

An audit is extraordinarily unlikely to occur when you’re using a professional tax service. That said, the IRS does perform random audits from time to time. And if you’re unlucky enough, they could target your business.

Without a tax professional, you’re completely on your own. You’ll have to spend an enormous amount of time verifying your tax information. With bad bookkeeping, you could also end up receiving a nasty fine if you can’t prove the validity of your return.

But none of this is a problem if you’ve used a tax professional. They’re prepared to defend your company and provide all the information the IRS needs. It won’t even feel like your business has been audited since they’ll take care of everything.

7. Stay on Top of Your Finances

Some professional tax services offer year-round support, providing things like weekly or monthly financial status reports. This is especially useful for business owners who have to contend with estimated quarterly payments.

If your finances are a mystery even to you, then tax service professionals can help you keep things in order. By knowing the health of your business finances, you can continue to make educated, safe decisions that lead to additional growth.

Take Advantage of a Professional Tax Service

When tax season comes around, you don’t have to go it alone. A professional tax service can save you time, money, and sanity. And since the cost is deductible, it’s even more affordable than you may think.

So what are you waiting for?

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