Top Four Questions About Using a CPA for Business Tax Planning

A CPA can advise businesses on investments, inventory, restructure, and sales or mergers. Your CPA has a hand on your financial health status. They can create a budget and help your business with unpaid taxes, work out payment plans with the IRS for taxes, and spot where you can save money or invest.

Here are the top four questions about using a CPA for business tax planning.

Q: Do you get more money if a CPA does your taxes?
A: Maybe. A CPA will strategize your financial pulse for a more strategic tax return. Ultimately, going solo with the complexities of your tax situation increase risks associated with cost. Just because you can do your taxes doesn’t mean you should. A CPA can advise your business on year-end tax moves that will save you hundreds in tax dollars.

Q: Is it worth paying an accountant for taxes?

A: Yes, unless you have an extremely simple return. A boxed tax solution may seem like a cost-effective option for small businesses until you have hours of confusing algorithms under your belt, to no avail. Unless your very small business has a simple return with standard deductions, we recommend speaking with a professional accountant to assess your specific business needs. The DIY solution could leave too much on the table.

Q: How much does it cost for a CPA to do my taxes? 

A: Depends.In the financial arena, you pay for what you get. Rates and fees depend on the individual CPA billing method. Whether the CPA charges flat fees, annual fees, or hourly rates, you can expect the savings will offset at least part of the preparation fees. In the long run, it’s the consistency and stability with your tax planning that determines the complexity of the task.

Q: Are you less likely to get audited if I use a CPA?

A: No. According to experts, the credibility of using a good accountant does not seem to influence the odds of an audit, however, red flags caused by errors cause IRS audits. Each practicing state requires licensure of CPAs. Their extensive education and adherence to standards of practice will decrease the risk associated with audits. While no one is exempt from a random audit, a good year-round tax planning process with a CPA will close the gaps.

Whether your small business is a sole proprietorship, partnership, limited liability company, or corporation, there are many benefits to working with a CPA for tax planning and preparation services. The skilled CPAs of Heal Accounting are tax planning partners that give professional advice for your pressing tax questions.

Contact the professionals at Heal Accounting to answer your questions about tax planning and preparation.