Doing your business taxes is a difficult and time-consuming process. You need to get them paid correctly and on time while doing all that you can to minimize your tax burden. The options are keeping your own books, using a professional software service or hiring a CPA. An article in Business.com does a good job of walking through the different options when it comes to bookkeeping and filing your taxes.
The most important thing you can do is make sure that you have all of the data that you need and a complete, up to date set of financial records. The difficulty with filing your own taxes is that the laws are constantly changing and different legal structures are taxed differently. If you are up to doing the research and learning all the ways that your specific company is affected by any changes in the laws then perhaps you are up to the challenge of doing it yourself. Some business owners feel a great sense of pride in tackling this project. If your business is relatively simple without a lot of depreciating assets or deductions then the job will be easier for you. At the very least we would recommend using professional tax software that will help you walk through the steps, giving you help along the way.
However, a complex business structure with many assets, including old and new, as well as other expenses, some of which are deductible or semi-deductible and some of which are not, might require you to engage a CPA. Hiring a professional allows you to avoid spending a lot of hours every quarter and at the end of the year that you can direct at other areas of your business. You might also find the investment worth it for the amount of deductions that could potentially end up saving you money. This will also decrease the risk of an audit.
Even though every business is different, every tax season is the same from the IRS’ perspective; figure out the best method for computing and filing your taxes accurately and on time.
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