The Value of Professional Tax Services
When it comes to business taxation, the process and results can be a double-edged sword, especially if you are not using experienced tax services to stay in compliance. Business tax compliance keeps you out of trouble, and taxation strategies save you money. There are two major pieces of the business taxation puzzle: bookkeeping and strategic activities.
The Bookkeeping Piece
Bookkeeping involves the capture, record keeping, and retention for reporting to the IRS, including:
- Detailed and accurate reports
- Categorization of expenses
- Cash and accrual accounting
- Tax season ready financials
These and other bookkeeping functions are critical to tax compliance and validation of income and expenses in the case of an audit. The next piece is crucial for compliance, audit response, and tax savings.
The Tax Services Piece
While accounting services can and often do offer the bookkeeping piece as well, they have other valuable functions for your business. These include:
A common mistake made by business owners is to assume that speaking to a tax professional a couple of times a year about specific issues is sufficient for their business. The problem with this approach is that business tax regulations are constantly changing. Not only that, but your business and personal financial situations are evolving as well. Tax professional services include constantly monitoring the four inputs for your tax compliance and savings:
- You & your family
- Your business
- The IRS
Your tax team becomes more of a partner in your business success than a vendor. All those inputs are constantly changing, and your tax team will be involved in financial planning for your success. As your personal and business financial inputs change, the tax team helps you in planning ahead as well as adjusting for changes already in play.
Along with all that planning, your tax team will be applying the plan to your tax return documents preparation. Unlike online tax services or bookkeeper prepared returns, the tax professional is adjusting return inputs to reflect the latest changes. They will also be fine tuning the return and its accuracy every step of the way. Most will give you a guarantee of accuracy, and in case of an error will represent you with the IRS in an audit.
Audit Response and Representation
As mentioned already, assuring accuracy and compliance with the latest rules and regulations provide audit response of great value. Often just the fact that a tax professional is the signed preparer of a return will result in better treatment by the IRS if they have questions. Tax services will include handling IRS questions, whether they come in the mail or via an audit appointment. Your tax professional is your virtual partner in IRS communications.
You can save a lot of money if your tax services include a Business Optimization Blueprint to maximize savings and protection. Whether you use an individual tax professional or provide tax services, you will find that the cost is well worth it in preventing IRS problems or in dealing with their inquiries.
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