As a small business owner, you’ve got more than enough on your plate. You may run the day-to-day operations of your business, manage both customers and employees and funnel efforts toward growing your business and its services. With all of these responsibilities, you may not have time for accounting and tax preparation.
Hiring an expert who offers small business tax services can help prepare and file tax forms, look for potential tax deductions, and ensure your records are up-to-date. If you plan on using an accountant or tax expert, this guide covers everything you need to prepare.
Do you need a small business tax service?
You might wonder if outsourcing small business taxes is the right choice for you and your business needs. While it depends on your particular situation, there are a few questions you can ask yourself to help guide your decision:
- Are you worried that you may not have time to complete your business tax return by the correct tax date?
- Does your business have special circumstances or arrangements that can complicate tax filing?
- Do you have an outstanding debt with the IRS?
- Have you sought tax settlement services or filed for bankruptcy in the past?
- Do you run an LLC or S Corporation, or are you self-employed?
If you answered yes to one or more of these questions, tax preparation services could be a responsible choice for you and your small business. Tax preparation services can help you remain in good standing with the IRS and ensure your tax return is completed according to federal and state tax laws.
What to look for in a small business tax service
Determining that you want the assistance of a tax professional is a great way to start this journey, but you may not know where to go next. There are a few factors to consider when choosing a tax preparer:
When choosing a tax service for your small business, your budget might be a top priority. Of course, how much your preparation services will cost depends on your specific needs. It’s also important to consider the option to e-file with tax software and how that plays a part in your budget.
The average cost of hiring an accountant to assist with tax preparation will vary depending on the services. The charges can range from $100 to well over $200 per hour. While this might sound like a large expense, using small business tax services can save you time and avoid penalties.
To help you get the most out of your money and time when preparing your small business taxes, consider using QuickBooks Live as a yearlong bookkeeping solution to keep your books up to date. This can help you achieve peace of mind, especially for tax season, and might make your overall tax pricing more sustainable.
There are different professionals who can help you prepare your taxes depending on the complexity of your situation. Naturally, the more difficult the situation, the more experience is needed, and therefore the higher the cost. For example, an enrolled agent (EA) is a tax advisor who can assist with tax-related consultations. EAs can be a viable, inexpensive option for a simple filing process.
Certified public accountants (CPAs) are licensed professionals who can perform accounting procedures and prepare tax returns, among other things. Typically, a smaller CPA firm is the more cost-effective route—perfect for a small business.
Small businesses with larger tax-related needs, such as requiring legal representation in court or fighting tax disputes, may require a tax attorney. While tax attorneys can also help file taxes, it can be quite expensive due to the complexity of the circumstances they handle, and they are often considered a last resort.
Common tax questions
Naturally, you may have questions about the tax preparation process before you meet with your tax professional. Keep reading for answers to some common small business tax planning questions.