Should You Consider Using A Professional Tax Preparer?

by John Craig | Jul 30, 2016 | General

If you own or manage a business, the answer to that question is a resounding yes!

Why? Because unless you are on the verge of retiring, you need to compete in order to see your enterprise fully succeed and meet the needs of yourself and your loved ones. Even if you are the only source for your products or services in your local market area, you still must compete with other types of producers vying for your prospects’ money.

Calling on a tax professional is one of the simplest ways, in fact, to generate extra cash to invest in your business.

But what about “splitting the difference” by purchasing an online tax software program that promises to prompt you through all necessary forms, and claims to maximize deductions and savings?

That’s a lot like thinking, as we watch the Summer Olympics, that you could view an off-the-shelf video, then successfully compete in the pole vault! A “how to” video might work for learning to grill a better cheeseburger. But in the kind of competition you face in managing your business, you need the advice of a qualified professional.

I’m reminded of a friend who had a large, legitimate business loss to report as he tried to supplement his commissioned sales career by writing a book. His book had not been available long enough to generate much revenue before the filing deadline. So he looked forward to paying much lower income tax because of the costs of getting the book published.

But as he searched for an online program to do his own taxes, he couldn’t find one that accurately gave him the savings he deserved, while still accounting for his income from his sales job.

Finally, he filed with the program that seemed to help the most.

Several months later, he nervously opened an IRS letter with a list of additional questions. It took some time to determine that his was not a full audit.   But he spent a good many uneasy hours scrambling to refile his financials. Thankfully, he had not misrepresented his status. And eventually, he actually received a refund check.

That whole experience could have gone much more smoothly with the right help.

Don’t make a similar mistake. Try using a tax professional. You’ll avoid extra stress and hassle at tax time. And the strategies you see employed by a pro will enhance your profitability. Then celebrate by serving up a gold medal version of the great American cheese burger!

Does my business need a bookkeeper?

by John Craig | Jul 1, 2016 | General

Why would someone starting out in business spend money to hire a bookkeeper, particularly with the accounting software that is available today? If you find a bookkeeper who is also a competent and experienced tax preparer, it makes all the sense in the world.

The rationale is similar to owning a home that needs work with the electrical wiring. You might try to take on that daunting project yourself, or ask your “handy” brother-in-law. But will those two options insure that new wiring is done in a timely way, and in accordance with building codes? And will either of you know the best systems to install in light of future needs, or the latest smart home technologies?

Probably not. And when the time comes to sell the home, is a building inspector going to approve your work? Or will the sale be postponed, or worse, be cancelled all together?

It’s not hard to draw likely comparisons from this homeowner scenario to bookkeeping for your business.

Just like waiting for your brother-in-law to show up, and having him pulled off the job when things go wrong at home, your time demands as an entrepreneur can make it next to impossible to do bookkeeping at regular intervals without interruptions. Paying a professional can actually be less expensive than continually stopping the work, and struggling to pick it up later. And you’ll completely avoid the stress of knowing that you’re not getting it done on time.

In place of the building inspector in the scenario above, plug in an IRS auditor, or a bank loan officer who needs to see that your financial “wiring” is neat and tidy. Finally, as with the latest smart home technologies, your bottom line needs to benefit from all the up-to-the minute tax savings that you are entitled to.

Saving a few dollars today isn’t worth short-circuiting your business. Finding the best professional help will insure that you’re fully powered up for a bright and profitable future!