Six Things You Shouldn't Assume Regarding Small Business Tax Preparation
Posted on: 1 March 2023
Neglecting to properly take care of business tax filings could put the future of your company at risk. Unfortunately, business owners sometimes make inaccurate assumptions about small business tax preparation.
The following are six things you shouldn't assume regarding small business tax preparation.
Small business owners can do their taxes more accurately than business tax services can.
Don't make the mistake of thinking you'll do your business taxes more accurately because you know your company better than a tax preparer.
A trained tax preparer knows the ins and outs of business tax preparation and will prepare your taxes more accurately as long as you provide your tax preparer with all requested financial information about your company.
Rely on a professional and you'll be confident that your business taxes are always filed correctly.
Your business isn't bringing in enough revenue to need to file a business tax return.
A business venture doesn't have to bring in huge profits to be required to file taxes. In fact, all businesses are required to file tax returns, and self-employed individuals must file returns if they earn more than $400.
Your company won't get audited.
You might think that you only really need professional services from a tax preparer if you get audited. This might lead you to believe that you should just file your own taxes because you're very unlikely to get audited.
Business owners should know that the IRS randomly audits a certain number of businesses every year. This means that audits can happen to companies of all sizes.
You can file your business tax return whenever you want.
There are deadlines for business tax return filings just like there are deadlines for filing personal tax returns. If you don't file by the deadlines that your company is required to meet, you may face added fees and penalties.
Your small business is current on all tax debts.
If you haven't had your company's taxes professionally prepared, you shouldn't assume that you don't owe any business taxes. Hiring a professional can give you confidence to know for sure that your company is current on tax debts.
You have to hire a CPA to get your small business taxes taken care of.
A CPA is an accounting professional who can assist you with business tax preparation. However, you don't have to hire a CPA. You can also hire a small business tax preparation service without the CPA credential to handle your company's tax filing needs.
Contact a professional for more information about small business tax preparation.
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