Year-end tax planning is approaching, which means thousands of ads are going to flood your computer while browsing the web with suggestions on what to do in order to help you prepare.
The fact of the matter is that somehow and somewhere; you’re going to collect information and put it to use. However, we want to make sure you’re choosing the right sources to consume information from.
Being a business owner, you understand that taxes are a mandatory and vital component of operating a business. One small mistake can cost you a nice chunk of money. And proper preparation can save you tons of money as well.
Your tax money is used for mostly government functions. But, that’s beside the point. The point is that you need to be more involved and educated in order to make sure you consume the right information and make the right decisions when preparing for tax season. The good thing is that this can be accomplished by becoming active in credible organizations such as; The National Small Business Association, or the local state and National Chamber of Commerce.
When it comes to consuming information, you only need to trust reliable sources like the ones mentioned above. Just because a person is a; friend, neighbor, or relative doesn’t mean they’re educated in taxes and finances. Sorry to burst your bubble. They could be consuming the wrong information as well, since there’s so much false information circulating around in society anyway.
So, if you can’t rely on people close to you such as relatives or friends, who do you go to? The simple answer is to hire a CPA. Although, there are definitely untrustworthy and inexperienced CPA’s, this is your best bet. But, figuring out who to trust all comes down to your best judgement.
Owning a business and dealing with highly complex tax returns will require education and experience in an accountant. We understand the importance of hiring an advisor or accountant to handle your financial affairs. However, the dilemma that most business owners face is choosing whether or not to hire an individual accountant, or a firm.
This decision will all come down to how much fire power will be needed for the job. For example, paying $400/hr to a tax analyst for a simple 1040EZ is wasteful. That’s a simple job that shouldn’t require you to pay an arm and a leg. Therefore, it all comes down to how complex your situation is.
Another good rule of thumb is making sure your tax advisors main focus is tax pro. We’ve have seen many individuals try to have a tax auditor prepare their taxes, and it just doesn’t work out the way they want it to all the time. This is due to many advisors having different primary practices. Even if you’re paying top dollar, that doesn’t mean you’re going to get the best results if their primary practice is different than what you require.
Besides being wary of the advisor you hire, be careful of ads on the radio and TV as well. There are many companies who spend tons of money on advertising, using the money they made from previous clients they charged. Simply put, you want to hire people with experience and not because they engaged in a marketing blitz to make themselves seem credible.
Your chances of getting positive results this tax year will drastically increase when hiring the appropriate person, and being cautious of who and where you consume information from. Consider all of these options, and you will have much success this filing season.