As a small business, is it better to save money and do my taxes myself or hire a professional?
This is my first year owning my own business. I've always done my own personal taxes but I have no experience filing taxes as an owner to a new business. We have hired several employees that I have to submit W-2 forms for. Am I better off doing this myself to save money or should I skip the hassle and make sure it's done right by hiring a professional?
I would always do taxes with a professional, even a place like HR Block as they take the fall if the taxes are messed up. If you get audited, it's easier to know that your i's are dotted and t's crossed. It's actually not that expensive for the piece of mind it gives you. A few hundred can save your butt :) I've gone to HR block since moving here 5 years ago and my taxes are always done correctly and I don't have to worry about it.
If you have employees as well, it's a nightmare to figure out (at least for this Canadian, learning the US tax system). Better safe than sorry! The IRS doesn't mess around (gulp).
Once I get them done (in just an hour or so), I can carry on and put my attention on other things - easy peasy (and less grey hairs!) :) xo
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As many have already said, the answer depends on your business structure, size, and the complexity of your business. With that said, keeping up with tax structure and tracking your business expenses is a year-round process, not just something that should be prepared once a year. If you've been able to stay on top of bookkeeping every month, filing taxes yourself may be an option.
However, the fact that you have several employees will likely make the process more complicated. To avoid mistakes, you have the option of using a third-party tax service or hiring a tax professional.
To know for sure what option is best for your business, check out this tax guide Business.com put together: Is It Time to Hire a CPA?
This guide will help you determine what bucket your business falls into based on the amount of time and money you have available to spend on preparing taxes this season.
Many small scale business owners decide that they want to manage their own, mainly because they believe it would decrease the costs. However, it has been seen that when a small scale business owner hire professional, more gains can be enjoyed.
Accounting helps you keep a track of your transactions. Maintaining accurate books of accounts is crucial to your business as it helps you make important business decisions. There are some mistakes that business owners need to avoid when hiring an accountant, whether hiring an in house accountant or hiring or choosing an accounting services firm, like Rayvat Accounting.
Rayvat Accounting offers outsourcing services for over a decade to clients across the globe. We have worked with companies from almost all industries and have successfully worked with major firms. We have complete knowledge of all the statutory laws and regulations of all the major countries, so no matter which country you are from, we would be able to provide you with error-free, precise and updated accounting any time of the day. Contact us at email@example.com for more details or visit our website at http://www.rayvataccounting.com/.
Hey, Corey. Great question.
For me, it was immensely valuable to sit with a tax professional and fully dive into what exactly you are taxed on, depending on the business entity, state, etc. I was hesitant to spend the money but it saves you so much stress in the future. And you come out of it knowing a lot more than you did.
So I would hire a professional. Hopefully your budget is not too tight!
Hire a professional! Let them do their job. You should focus on other important aspects of business rather than managing taxes.
I had the same question about my small business, and asked my dad, who's run an accounting firm for decades. His answer (more or less) was: "Most people don't understand how many options there are with taxes. Even the simplest person or business can file at least 16 different ways, but they don't know what they're missing until they talk to us. In other words, people end up saving far more by working with us than by just doing their own taxes."
In other words, it's probably better hire a professional.
I don't have a dog in this fight, just another small business owner, but keep good records and let a professional do your business and personal taxes. Learn enough about the tax forms so your information is easily extracted by the tax accountant, that keeps the costs down.
It is better to hire professional. Sometimes we lose more money in the process of saving some money.
Depends how you value your time and whether you know all the tax concessions for small business.
I develop and present financial programs for multinationals and small business. But when it comes to tax I hire the professionals