How to Decide if You Need Help on Your Taxes

How to Decide if You Need Help on Your TaxesCredit Devrim Pinar/Shutterstock There is a world of difference between geschftliches miteinander and personal taxes. When it comes to personal taxes, filing manually or using online software can be a viable option for individuals with some financial background. For small business taxes, however, this is leid always the case.Like any software program, garbage in is garbage out, said Scott Berger, a principaltax expert at Kaufman Rossins tax and entrepreneurial services practice.While there are several tax software options for small business, the only way to get personal, valuable insight is by working with a professional, according to Berger. You could quickly find yourself in a garbage in is garbage out scenario if you lack knowledge on basic tax concepts and rely on tax software.If youve never done it before, you probably shouldnt start, Berger said. As with any problem, if Im Googling it, I really should find a professional. Time is always better served doing what you do and doing it right.Editors note Seeking atax debt relief service? Fill out the below questionnaire to have our vendor partners contact you with free information.Tax law can be immensely complicated, and business structure, personal filings and changes in the law can create major headaches for small business owners trying to manually complete taxes.The short answer Get professional tax helpThere are a few reasons why its important to seek out professional help when it comes to taxes. The first is that a tax professional can make sure youre paying the exact amount of taxes youre supposed to. Berger said it can be easy for inexperienced small business owners to accidentally overpay on their taxes. By not taking advantage of all the available deductions and incentives, business owners can end up overpaying simply due to a lack of knowledge.If you make an error or omit deductions that youre entitled to, its costing you money out of your pocket, Berger said. Looking for tax software to do your taxes yourself? Check out our reviews and best picks.The second reason to work with a professional is mora obvious to avoid errors. By making a mistake on your taxes, you expose yourself to penalties from the IRS. There are underpayment penalties, late filing penalties and various other penalties you could owe to the IRS if you dont file properly, according to Berger. By making an error on your taxes, you are exposing your business to financial risk.Berger also stressed how business owners should stay focused on running their business as opposed to dealing with operational tasks like filing taxes. A business is successful in the first place because its members are focused on growing the business and doing what they love.Most of these business owners should be spending more time working on their business, not in their business, Berger said. They should do what it is they do best. Are you in need of tax debt relief services? Check out our reviews and best picks from our sister site Business.com.Healthy tax practicesWorking with a tax professional also means establishing healthy tax practices so youre prepared to file. Tax season shouldnt be a looming time period to gather financial infoit should be a simple time period where there are no surprises, Berger said. By working with a professional, you can establish quarterly check-ins and recordkeeping habits so little work is required come springtime.The biggest healthy habit, however, is keeping consistent and maintaining current financial records.In a perfect world, theyre keeping contemporaneous books and records, so as transactions are occurring, theyre recording them so theyre not trying to figure out three months later or six months later whats going on, Berger said.Proper planning also provides you with the opportunity to cash in on deductions and other tax-saving incentives. Berger said it may be too late if youre just starting to look int o these ideas now.In February and March, its generally too late to do anything to reduce your tax liability for the prior year, he said. There are some things that can be done, but its too late.Why it mattersEstablishing healthy tax habits and working with a professional are two ways to ensure youre running your business correctly. It can also allow you to spend more time focused on your business and less time worrying about keeping up with tax law.In 2017, Congress passed the Tax Law and Jobs Act, which made significant changes to the U.S. business tax code. Professionals like Berger have been studying these new laws on a full-time basis, so theyre in the best position to help small businesses file for the right amount and maximize deductions. If youre running a small business, its important to play to your strengths and allow other professionals who have the time and background to help your business. fahl DAngelo Matt DAngelo is a Tech Staff Writer based in New York City. After graduating from James Madison University with a degree in Journalism, Matt gained experience as a copy editor and writer for newspapers and various online publications. Matt joined the staff in 2017 and covers technology for Business.com and Business News Daily. departure Your Business Business Ideas Business Plans Startup Basics Startup F unding Franchising Success Stories Entrepreneurs Grow Your Business Sales Marketing Finances Your Team Technology Social Media Security Build Your Career Get the Job Get Ahead schreibstube Life Work-Life Balance Home Office Lead Your Team Leadership Women in Business Managing Strategy Personal Growth Find A Solution HR Solutions Financial Solutions Marketing Solutions Security Solutions Retail Solutions SMB Solutions About Us Contact Us Partner with Us Copyright Policy Terms of Use Privacy Policy Do Not Sell My Personal Information Advertising Disclosure Sitemap 200 Fifth Avenue, Second FloorWaltham, MA 02451inf obusinessnewsdaily.com Copyright document.write(new Date().getFullYear()) All Rights Reserved. Company About Us Contact Us Partner with Us Copyright Policy Terms of Use Privacy Policy Do Not Sell My Personal Information Advertising Disclosure Sitemap Network Business.com BuyerZone.com