Navigating your way through the United States and Utah tax code can be complicated for anyone. But if you’re running a business, it’s even more confusing. We may feel a slower paced way of life here in Southern Utah, but we are subject to the same regulations as everyone else.
As important as it is for every individual to file their taxes accurately, businesses must be even more careful. As a business owner, you’re more vulnerable to audits. It doesn’t matter if you’re a sole proprietor or large corporation; the way you file your taxes can either make or break you.
How do you know you’re in the clear?
Filing your taxes accurately can mean much more to you than staying out of trouble. It can actually mean a lower tax burden, including paying less throughout the year and getting more back. But how can you be sure you’re including all the proper income, deductions, and documentation to ensure accuracy and avoid overpaying?
Unless you’re an accountant yourself, doing your own business tax preparation is inherently risky. The IRS has a staff of 90,000 who specialize in catching mistakes. Shouldn’t you have a staff (other than yourself) of at least one to ensure there aren’t any?
Trust the professionals
The best way – and likely the only way – to make sure your tax prep is done correctly is to get some professional help. Many people, even businesses, tend to resist this idea because of the perceived cost. However, as many who have hired a CPA or tax preparer can tell you, it’s worth it, and usually ends up saving you money by reducing your tax burden. Your CPA can catch extra deductions, ensure proper business structure, keep you on top of ay tax code changes, and more – all in the name of helping you pay less. And who doesn’t love that?
Choosing the right accountant
Once you’ve made the wise decision to get some help, do some homework on accountants in Southern Utah. Make sure any tax preparer you work with has the proper credentials. They should have their own PTIN (preparer tax identification number) and plenty of experience. Even better if they offer e-filing options. Tell them about your business situation, and ensure they have the right knowledge to file your type of return.
Your biggest hurdle in business tax preparation may be asking for help. Once you’ve done that, you’ll see how much easier it is to let a professional handle the job for you.