As business owners, our tax filings are a lot more complicated.
It is to our advantage, however, to go through the extra effort, because tax laws are written for the benefit of the business owner.
If we look at the root of why this is, we will discover a couple of interesting facts.
We all know that businesses are what keep our economy running.
If businesses are required to pay higher taxes, this increase in taxes results in a direct decrease in company profit.
If profits are down then companies are less likely to expand and hire new employees.
In many cases, employers would be required decrease their work force.
In essence, fewer products are manufactured and purchased throughout our economy, etc.
It is a downward spiral.
That is why we here so much talk about taxes during rough economies.
If it is easier for businesses to become profitable, more and more businesses will.
If profits are up, even though the business may pay less of a percentage in taxes, they will pay a larger dollar amount in taxes.
Also, increased profits leads to company growth and expansion plans, resulting in higher employment numbers.
All this being said, do business owners need to become experts in tax deductions, tax law, or tax documentation? Well, this is where tax professionals come in.
It would be unwise for any business owner to neglect the use of tax professionals.
Not only because they will probably save the business owner a lot of money on their taxes, but to make sure everything is done properly and legally.
Taxes are their expertise, business should be ours.
If an audit is performed and discrepancies are discovered, how much better would it be to have a professional on our side to work out our tax problem resolution? When selecting a tax and accounting professional, we want to find one who is aggressive in understanding the law, but conservative in knowing not to push the envelope.
The tax laws are created for the benefit of businesses, and there is no need to try and cut corners or cheat the system.
The best way to find an experienced accountant is through referral from those in our same industry.
Have an interview with your tax professional.
This is an important step in your decision process because you need to determine if they will be a good fit for you, and if you match the typical client of their firm.