Many business owners often wonder exactly how a tax accountant can really help their business, and whether or not the help of a tax accountant is truly necessary.
The fact is that a tax accountant can help your business in many ways that you might not even realize.
Did you know that the amount of payroll tax you should be deducting for your employees can change in the middle of the year if Congress or the state legislature changes tax law? It can.
If you are not up to date on payroll tax, FICA, and other required employee payroll withholdings, you can put both you, your business, and your employees at risk of underpayment and the many financial and potentially criminal penalties associated with underpayment of taxes.
Depending on your jurisdiction and type of business, your business may be responsible for quarterly federal, state, and local taxes.
That is paperwork every few months, and a big headache for business owners.
A tax account like Tax Accountant Denver can help remove that headache from your shoulders, and ensure your taxes are done properly.
Depending on your business’ earnings and the nature of your business, a qualified tax accountant like Tax Accountant Denver can help you plan for potential tax liability. During a tax filing period, your income can help a tax accountant look at your earnings and plan for the remainder of the tax period, helping you understand what you may owe later.
Knowing what you may owe later helps you plan your business finances to be prepared to pay any tax liability and not be forced to deal with penalties if you cannot pay on time.
Reducing Taxes Owed
A qualified tax accountant like Tax Accountant Denver can also potentially help you reduce the taxes that your business will owe.
Do you know every possible write-off that your business is eligible for under state and federal tax codes based on the type of business you operate? If you don’t that is one reason you need a tax accountant.
A tax accountant can potentially save you money by helping you review your business expenditures and help you determine which ones may be able to be deducted on your annual tax return.
Did you know that a qualified tax accountant can also provide bookkeeping services for your business? That’s right, you no longer have to spend hours and hours maintaining your daily business ledgers, check register, or any of the myriad of tasks associated with bookkeeping.
A qualified tax accountant like Denver Tax Accountant also may offer services like accounts receivable and payable, and handle not just your payroll but pay your bills for you and send invoices to your customers.
Profit and Loss Statements
When you need capital to grow your business, one of the first things the bank or lender will ask for is your annual profit and loss statement.
A qualified tax accountant like Denver Tax Accountant can help you by preparing such statements, and keeping them constantly up to date. That way, when you need capital, your tax accountant will have easy access to the data needed to quickly prepare your profit and loss statement.
You should begin working with a qualified tax accountant as soon as possible because there are many benefits for your business by doing so.
Too, there are many benefits to you as the business owner by working with a qualified tax accountant such as taking a wide variety of tasks that are complex and regulated off your plate, and having them done right by a qualified professional.