Federal tax rules have changed recently and the IRS expects everyone who files to understand them all. While you may have done your business taxes for your IT or computer-based company in the past, times are fast changing. Business owners are finding that they need to answer more nuanced, complicated, and detailed questions in order to have their taxes accepted. The time that it can take to find a particular figure or a certain document will definitely start to eat into your work day. Here is why all computer-based companies should be getting professional tax help.
Locating the Right Tax Code
The Internal Revenue Service uses a database of tax codes to help categorize businesses and individuals, but not all can find one that corresponds with what they do precisely. For example, your business might specialize in repairing electronics and IT support services. There is not a single tax code that would cover multiple areas of specialize such as the ones listed above. You can choose a different code that matches your business, sort of, or you can just find small business tax preparation services that can give you a personalized solution.
Being Prepared in Case of Audit
After you have filed your federal and state taxes for the year, you get to focus on getting back to business and seeing how much money your company can make over the next 12 months. That is, until you receive a notice that you are being audited. The horror of being audited isn’t in the fact that your financial records are going to be scrutinized, especially if you have all of your documents organized. The problem with tax related audits is in the amount and duration of time that they can take. Imagine having to meet with an auditor potentially three to five times over the course of weeks, for hours on end. By receiving small business tax preparation services by Brown Smith Wallace, LLC, you will be fully prepared in case of an audit. Have your tax professional represent you and deal with all audit concerns.
Focusing on What Your Company Excels At
The fact of the matter is that it takes time to do your taxes. Sending in quarterly tax payments, responding to requests for additional documents, keeping precise records of payments received, employee payroll, and even real estate taxes paid on commercial property is time consuming. Remember, your business is in the IT and computer sector. What your business excels at is finding computer-based solutions, not figuring out how to lower your federal tax liability. You can be in charge of your business taxes, guessing along the way. Alternatively, getting assistance from a tax professional will enable you to focus on computers and help you to free up your time.
It may be easy for you to do your business taxes, especially if you are using software. However, you will probably not get the same results as if you hired a CPA. Just as you wouldn’t recommend your customers to try to set up their own servers, a tax professional wouldn’t recommend that business owners try to handle tax issues on their own.