You’re looking to save some cash so you do your own taxes. Only to find yourself buried in a mountain of paperwork that you don’t understand. Or confused about what you can and can’t deduct from your taxes.
Taxes aren’t for the faint of heart, especially when you own your own business. In fact, preparing your taxes correctly can make or break your business. And I don’t mean that lightly.
Sure, it’s a hassle to make time to get your receipts and bank statements together for your accountant, especially if you didn’t set yourself up for success at the beginning of the year by using a computerized accounting system like QuickBooks Online. But when you’re busy researching the various tax deductions you may or may not be able to use, you could be working with clients. Making money.
Accountants are required to take continuing education hours every year to keep their licenses. That means they are required to keep current on the tax laws, know if any new paperwork needs to be submitted and can sift through your paperwork for you. It’s a win-win in my book. A win for my clients and a win for me!
Sure, you know you can deduct your internet services and your mileage. But did you know you can deduct a portion of your rent or mortgage, if you have a home office? There are so many deductions you can take as a business owner that you’re leaving money on the table if you’re not using an accountant for your taxes. And, no, TurboTax will not identify all your deductions. It doesn’t know all the nuances of your business and can’t ask you the right questions.
The IRS is no joke. They can garnish your bank account and take your assets if you can’t pay your tax bill. And while it doesn’t happen often, do you really want to risk it? If you make an error and fail to pay your taxes, the IRS can come back at you for all the back payments—plus penalty and interest.
Not only that, but finding the time to do your taxes right, yourself, is stressful. You have a business to run and a family to take care of. Where are you going to find the time? Save the stress and let someone who knows what they’re doing take the reins for you.
So do you need a CPA to do your taxes? Absolutely. Even as a bookkeeper, I hire a CPA to do my taxes every year. I don’t want to leave anything to chance.
But how do you find a CPA who you can trust? I recommend you searching the American Institute of CPAs directory. They’ve vetted out the accountants on their list and can attest to the professionalism and qualifications of their members. I also have a blog that can help you find the right CPA for you. Not only do you need to trust your accountant, but you need to find someone whose personality fits you and your needs.