3 Advantages of Hiring a Tax Accountant for Your Business
In business, only one thing is certain: taxes.
No, seriously. Just think about it. Success isn’t certain. So is failure. In business, you never quite know what a new day brings. However, the taxman will never fail to come for what belongs to him.
For many businesses, though, the tax code is a big cause of sleepless nights. When you’re not struggling with how much you need to pay the taxman, you’ll be struggling with how much to claim from the taxman.
This is why hiring a tax accountant should be a priority. Continue reading to learn how this professional will help your business.
1. An Important Member of the Finance Team
In the U.S., 82 percent of businesses that fail do so because they run into financial challenges. Tax can easily become a financial challenge if you aren’t diligent.
For example, businesses are entitled to a range of tax deductions. These deductions reduce your tax bill and can even earn you a cheque from the taxman. So, in a way, you can use tax deductions to reduce your operating costs, especially if you’re running on a shoestring budget.
This makes a tax accountant an important member of your finance team. While other finance professionals work on the aspects of money management, your tax accountant will be working to reduce your tax liabilities.
2. Ensure Tax Compliance
What’s the worst that can happen if you fail to pay business taxes?
Different jurisdictions handle non-compliance to the tax code differently but in the U.S., you can expect fines and penalties. This is the last thing you want when you’re a small business on a tight budget. Fines take away the money you could have used for other important things, such as marketing.
Tax non-compliance can also hurt the reputation of your brand. Can you imagine what your customer will think if news breaks that your business doesn’t pay taxes? Paying taxes is part of being a good corporate citizen, so customers can avoid doing business with you if you don’t pay.
3. Keep Up with the Tax Code
Lawmakers have the power to change the tax code.
As a business owner, you probably don’t have the time or interest to stay abreast of changes in the tax code. Unfortunately, if you’re doing taxes on your own and there is a change that directly affects your business, your business could become non-compliant.
Tax authorities won’t care that you weren’t aware of the changes. They’ll still levy the penalties and you’ll have no choice but to pay up.
Hiring a tax accountant ensures your business is up-to-date on changes in tax laws. This professional will know when there’s a change and take steps to ensure your business complies. Even when you’ve outsourced the tax function to an external service provider like Pop Business, you’ll still enjoy the same advantages.
Hiring a Tax Accountant Is Necessary
Hiring a tax accountant might seem like a luxury, but regardless of how small your business is, it’s a prudent thing to do. Tax accountants don’t just do your business taxes. They also help ensure your business stays compliant.
Explore our blog for more small business tips and advice.