Banking and Finance, Part 3: How to Know If I Can Handle My Own Taxes
This article is continued from Banking and Finance, Part Two: How to Open a Business Checking Account.
As a self employed business owner, filing your taxes properly and ensuring that you have maximized your deductions can literally help you save tens of thousands of dollars during a very profitable year. Likewise, ensuring that you have not missed any forms or schedules and that you are using the right tables and calculations can help you avoid an audit and ensure that you are paying or receiving the right amount.
So how do you know if you should file your own taxes or hire a professional?
Knowing the best way to handle your taxes will depend on a number of things. For starters, do you manage any employees? If the answer is yes, then hiring a professional is certainly advisable.
Likewise, if you have a large number of deductions or are filing business taxes for the first time, working with a tax professional can offer many benefits. There is always benefit to hiring a tax professional, but in some cases, it is certainly very highly recommended.
When considering the cost of using a tax professional, there is certainly one thing that you need to keep in mind. While paying a one-time fee for someone to do your taxes can impact your budget, a single mistake on your part could end up costing you thousands of dollars in fees, penalties, and potential court costs.
A tax professional is trained to help you get the biggest refund possible and can likely help you gain more than the cost of their services. When you also stop to consider than most tax professionals will help sort things out if you are audited due to paperwork that they were paid to file, the benefits certainly start to outweigh any costs you might have to pay for their services.