6 Signs You Need Tax Help

As a small business owner, you wear many hats. You’re a salesperson, marketer, manufacturer, delivery driver, manager, and an accountant. Some of those roles you might fit quite nicely; others might take some work. Eventually, a successful small business owner will need to delegate some of those tasks, whether it’s to employees or an outside provider.

One of the areas in which many businesses look for help is taxes. It’s no wonder; the tax code can be complex, and mistakes on your taxes can cost you severe penalties (or at least a higher tax bill than what you ought to owe).

Here are some signs that you might need a tax preparation service

  1. Your business deals with inventory or large capital equipment investments. The fact of the matter is that a service-based business with very little overhead in terms of capital expenditures is in a much easier tax situation than a business that has to buy materials or equipment. The rules regarding equipment and inventory are very specific, and you’ll want to have a tax preparation service helping you out in order to guide you through the sometimes-confusing landscape when it comes to those deductions.
  2. None of your receipts or records are organized. Too many small businesses start out with the “ shoebox” method of accounting. That is to say that they simply throw all of their receipts into a shoebox, and go through them only at tax time. This is not only a bad idea because it means you’re never really sure whether your business is profitable, but it also means you’re going to fare worse at tax time. Having a tax preparation service to guide you through cleaning up your own mess can help you realize significant tax savings.
  3. Your business is making a lot of money. In the first year or two of business, it’s likely that you didn’t make much money. You may not have even had to pay quarterly estimated tax payments in those early days. Once your business is turning a solid profit, however, you need to worry about taxes more than just during tax season. You need to consult with a tax preparation service throughout the year to make sure you’re meeting your tax obligations, and also to make sure that you’re maximizing your business’ financial strategy in order to reduce your tax burden.
  4. You’re facing a significant tax burden. Along those lines, many small business owners are surprised to find out that they actually owe taxes. This is especially true for small business owners who are used to getting a paycheck, and the tax refund that so often goes along with it. For some small business owners, it’s a vague feeling that “sure, I should be doing something about taxes,” but they don’t worry about it until it’s time to file. If you’ve prepared your taxes and you realize that you’re facing a hefty tax burden, it can be worth talking to a tax professional. A tax preparation service can help you find deductions you weren’t already aware of, and they may be able to help you navigate the process of paying what you owe.
  5. You’re just getting started. Just a couple of hours of time with a tax preparation service when you’re first launching your business can save you countless hours of frustration down the road – and potentially a lot of money. When you first start your business, consult with a tax professional. Discuss your business plan, profitability, and what kinds of things you need to be doing along the way to reduce your tax burden.
  6. It’s nearing the end of the year. There are almost always decisions you can make in November and December that will, ultimately, help your business out from a tax perspective.

Take a little bit of time to get some tax help at the end of the year and you can make those decisions correctly.

There’s nothing wrong with needing some tax help from time to time. As a small business owner, you know the value of a service, and you know when it’s time to seek outside help. Take a few moments to consider whether your business could benefit from tax help today.

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