A tax advisor does more than file a business’s taxes. They keep up with changing laws to reduce risk and help businesses act proactively to minimize taxes.
Whether you’re not happy with your current tax situation or are looking to invest in a more lucrative business, an expert can save you money and time with practices like these:
Tax Planning
Most people don’t try to fix their cars or do home improvement projects independently, but when it comes to filing taxes, they assume they can do it themselves. The truth is that, in most cases, the complexity of tax returns requires professional assistance.
A good handling of business taxes by Denver tax advisor will help you plan for the future and make financial decisions considering all taxable considerations. They will also look for creative ways to save you money from the IRS legally.
Choosing the right advisor starts with asking for recommendations from trusted colleagues. When interviewing potential advisors, ask about their approach to handling the IRS on your behalf and request examples of how they have handled such situations. Also, look for advisors familiar with the latest tax law changes yearly.
Tax Return Preparation
Many people find filing their taxes overwhelming, especially if they have numerous receipts and invoices to organize. A tax advisor can make it much easier by preparing annual tax returns and helping with record-keeping throughout the year to identify potential tax savings opportunities.
They keep up to date with the latest tax laws and IRS guidelines to help their clients avoid any compliance issues. For example, if back taxes are owed, the tax advisor can advise on resolving the situation without incurring fines or penalties.
A successful career as a tax advisor requires strong mathematical ability and excellent attention to detail. A bachelor’s or master’s degree in accounting, business law, or taxation is a good starting point.
Tax Audit Support
Having in-depth knowledge of the latest IRS guidelines is crucial in the highly specialized field of taxation. It provides a stable career path with ample opportunities for promotion and advancement. It is essential to have a qualified tax advisor who can represent your business during a tax audit by the IRS. They can assist you in minimizing the taxes you owe by showing you how to take advantage of all available deductions and credits.
When selecting a tax advisor, look for someone with experience working with small businesses whose fees are within your budget. You can find a CPA or EA by asking other small business owners for recommendations and consulting professional tax organization directories. If you’re ready to streamline your financial management, Bench can provide you with a certified business tax advisor as part of our monthly bookkeeping plans.
Tax Compliance
Tax compliance refers to a taxpayer’s ability to report their income and the taxes paid accurately. Wage earners generally exhibit near-perfect compliance rates because they receive their income reported by a third-party source (their employer).
In contrast, many individuals accrue unreported income more obscurely, making them less likely to comply with tax laws. Social norms, like the belief that tax evaders are immoral, can also significantly impact tax compliance rates.
A tax advisor is familiar with all changes to the tax code every year, so they can help you create a strategy that helps you keep as much money in your business as possible. Additionally, they can run calculations based on decisions you’re considering to show you their tax impact.
Financial Planning
Proper financial planning is crucial for businesses to reach their maximum earning potential. Seeking assistance from a tax advisor can aid in creating an accurate and realistic financial plan. Additionally, they can ensure that the business adheres to all financial regulations, avoiding costly penalties.
It can be tempting to try and handle the business’ taxes in-house, but this is risky. In addition, tax laws are constantly changing, and if you’re not a professional accountant, it’s difficult to keep up with these changes. In most cases, hiring a tax advisor can save your business money in the long run. In addition, they can offer other services that may improve your business’s overall financial health. This can include advising you on reducing operating expenses and increasing profits.
