When you are new to running a small business, there is so much to do! Inventory of the products, getting clients who will pay on time—let alone managing staff! It is hard, but come tax season, it can get even harder.
It seems that to file a tax return in the US (or the UK) you need a degree in accounting. The forms are complex, and nobody has in-built knowledge about taxes applied to goods or services—let alone the percentage rates that apply!
So, if you aren’t sure if you need to hire a tax accountant to help with tax season and beyond, read on as in the following article, some of the signs that you need help will be explored.
1. You’ve Made Errors
Yes, human error is to be expected occasionally, but when it comes to making mistakes on a tax return form, that simple misplaced decimal point can cost a fortune in fines!
One sign that you need a tax accountant in Penrith (or wherever you are based) is that you have made errors on tax returns in the past. As said, the forms themselves are complicated and it is easy to make an error. However, if you have a history of making mistakes on a tax return, the next time it happens, you may receive more than a fine. So, hire a tax accountant to avoid these unnecessary costs!
2. You Have No Time!
Running a business of any size is hard, and is not for the faint-hearted. There is a steep learning curve, and when it comes to managing accounts you may simply not have the time to oversee everything you need to.
If a deadline is looming, and you have no time to fill out the forms, then you should hire a tax accountant. They will get the forms completed and filed on time and best of all, if they don’t, you are not legally liable.
3. There’s an Audit Coming Up
Don’t panic! In the UK and the US, tax audits are commonplace, and the business chosen to have one can be picked at random.
However, if you have an audit around the corner and don’t know what documents you need, then it is time to look for an accountant who can make sure that all of your files are in order, and that the audit goes off without a hitch. Again, if there is an error in the audit due to the filing, it’s the accountant who is responsible and you will face no repercussions.
4. Your Business is Growing
You have expanded your business, you have gotten more clients and there is more money coming in. Congratulations!
As you move up a tax bracket, however, you will need more help to make sense of tax laws, and to gain a better understanding of the tax brackets (as well as what is owed and what you can claim back for). Unsurprisingly, this is complicated, and is a key reason to hire a tax accountant who specializes in tax. They can advise you on deductibles, as well as brackets and how to pay your taxes without taking a large hit to your income. So, seek one out if your business is expanding.
