When is your Tax Team Earning Its Fees?
If you are still referring to accounting professionals as “bean counters,” you may want to rethink that misconception once you learn a few facts about how some tax accounting firms really earn their money. In fact, some can bring you more in tax savings than their cost. Yes, you read that right. It is all about a suite of services and a “partnership in profitability” with your business.
The key is to allow yourself to let go of some of the tasks related to accounting and taxes and turn them over to a tax consulting and preparation group. It is the nature of entrepreneurs to take on challenges related to their business, but this is one you may want to let go in favor of giving less money to the government.
So, just what is a tax consulting and preparation group?
This is a simple answer. The tax consulting and preparation group is one which pulls together the various services that cover a business’ tax requirements from data entry through tax return preparation. There are a number of services between those two ends, and they are the pieces to an efficient and money-saving business tax accounting function.
The Pieces of the Solution
One drawback of presenting these services as important is that many entrepreneurs never think of some of them until it is time to make a major business decision. Unfortunately, when that happens it is often too late to save money, so they pay more in taxes than necessary. When seeking a tax accounting firm, consider these services:
- Bookkeeping – This is likely the most thought of service related to business taxes. An efficient and accuracy-oriented bookkeeping function helps to facilitate timely tax return filing and minimizing errors and IRS scrutiny. The IRS computers are fast and set up to recognize expense category deduction totals that are out of line with those of similar businesses. Math errors also kick returns out for more scrutiny.
- Tax Advice and Planning – A licensed tax professional, is not just advisable, it is mandatory if you want the best advice and tax planning. This begins with the setup of the bookkeeping charts of account to avoid errors or mis-posting. A tax accounting firm handling this, and the bookkeeping service together will assure that the data is properly categorized to get past those IRS computer checks.
There are also multiple situations as a business grows that can impact the taxes owed based on the owners’ decisions. The right advice and planning in advance can save the business more in tax dollars than the cost of the services over the years. These decisions involve employees, business equipment or real estate purchases, and retirement planning for the owners.
- Tax Return Preparation – Instead of using online tax preparation solutions, consider the advantages of having the preparation function in the suite of other services mentioned here. The data is properly categorized, posted, and reported. The efficiency is good enough reason, but the better chance of avoiding an IRS audit is even more important.
Spend your time improving and growing your business, not dealing with tax headaches.