Serving business owners since 2007The answer is a resounding yes!
Tax issues are a significant consideration in the initial formation of your business and its ongoing operation. Failure to consider and correctly interpret all applicable tax issues can be very costly over the life of a company. Because tax issues are complex and subject to interpretation, consultation with a qualified accountant, tax advisor, or financial planner can result in significant savings.
Is it better to file taxes with a professional or do it yourself?
Filing taxes by yourself can be difficult. It takes time to learn the rules, and you might risk making costly mistakes.
While consulting a professional when tackling tax issues is better, some people can file taxes independently. If your taxes are simple, you can use online tools to guide you.
However, if you have complex taxes or want to ensure you file your taxes correctly, you should consult a tax professional. An accountant or tax advisor can help if you own a business or have many investments.
Why should you hire an accountant?
An accountant provides services to help with money management. This management includes record keeping, financial reporting, tax preparation, budgeting, financial advice, auditing, and managing payroll.
Accountants save business owners time by tracking income and expenses. They also organize finances so that business owners can better understand their financial situation.
Accountants also advise on making smart money decisions. This advice helps business owners plan for future expenses or growth opportunities.
What is the cost of hiring an accountant?
The average cost of hiring an accountant can range from $40 to $400 per hour. The price depends on various factors, including the business size, the accountant’s level of experience, and the accountant’s education.
What is the purpose of a tax advisor?
Tax advisors use their knowledge of tax laws and rules to help clients with taxes. Because different business structures, such as LLCs and corporations, can have varying tax treatments, tax advisors can help you pay the right amount and find ways to save on taxes. Typical tasks that tax advisors complete include tax planning, preparation, problem-solving, assisting with business taxes, and planning for retirement or estate.
One of the main goals of tax advisors is to save you money. Their extensive knowledge of tax laws can help you find tax savings.
Tax advisors also assist with tax problems. If you encounter any tax-related complications, they can help you understand them and fix them.
How much does a tax advisor cost in the US?
Depending on the complexity of the service, hiring a tax advisor can cost between $100 and $400 per hour. Simple tax returns may cost less, while complex ones will likely cost more.
What is the difference between a tax advisor and an accountant?
While accountants and tax advisors deal with a similar field, they have separate roles in managing money flow.
Accountants provide broader money management services such as making financial reports and handling budgets. Accountants also specialize in providing advice on business spending and saving.
Tax advisors specialize specifically in tax preparation. They generally have a more extensive knowledge of tax laws, allowing them to correctly file taxes and discover ways to save you money on tax-related expenses.
Why would you need a bookkeeper?
Another common money management position in businesses is bookkeeper. A bookkeeper maintains daily records of business transactions such as sales and expenses. They ensure that every record book is accurate, up-to-date, and organized.
How much should you pay a bookkeeper?
Bookkeepers usually charge an average of $21 to $36 per hour. This price can vary depending on the bookkeeper’s experience or education and the intensity of the work.
What are some differences between bookkeeping and accounting?
Bookkeepers keep records and track the daily flow of money. Unlike accountants, they do not specialize in giving business advice. Bookkeepers often only require a high school diploma to be qualified for the position, although some employers may prefer candidates with additional certification or coursework in bookkeeping or accounting.
Accountants have more responsibilities than bookkeepers. They use bookkeepers’ records to make reports and provide financial advice to business owners. While bookkeepers are often only required to have a high school diploma, accountants need more professional credentials.
Tips for choosing an accountant, tax advisor, or bookkeeper
Deciding what financial professional you need is essential for the success of your business. Depending on your individual needs, you may need help from all three professionals. You may not need their services on a daily basis, but they should be involved in your financial planning and tax-related decisions.
Look for someone with experience with similar companies who shares your view of how aggressive your tax strategies should be.
Cutting corners here can be “penny wise and pound foolish”.
No matter what industry your business is in, reaching out to an expert for aid in financial management is ideal. Understanding the different tax rules for each business type can help business owners determine the best fit for them.
Consult a professional tax attorney before incorporating your business.
