Should You Do Taxes Yourself or Seek a Financial Preparation Service?

Self-preparation of tax returns by small business owners is common, but whether this is the best course of action depends on various circumstances. It's important to consider your personal experience and the size, complexity, and degree of your company.

So should you do your taxes yourself or seek financial preparation services? Read on to find out. 

How Long Do You Have Left?

It should be straightforward for a sole proprietor with an annual revenue of under $100,000 to file their taxes. To lessen stress during tax season, it is ideal for reconciling your books once every week. If all you're doing is dumping receipts and invoices into a box, once a month is insufficient. Errors could get worse very fast.

How Much Will Your Company Expand in a Calendar Year? 

Create a strategy to succeed. Create a bookkeeping and accounting system that will expand your company. The alternative is to constantly catch up on bookkeeping, which is a certain way to skip payments and make bad financial decisions. 

Retroactive payroll and account processing is challenging and time-consuming; dealing with tax authorities to correct an error is even more challenging.

As your company expands, new challenges arise. For instance, you'll have to figure out and collect payroll taxes each time you release a payment after you start paying yourself as an employee or hire one. At this time, it could be useful to look into accounting and payroll services.

What Is Your Financial Cap?

Services and expert counsel have different prices. Small businesses frequently use accounting software similar to QuickBooks. 

Accounting software subscriptions generally cost several hundred dollars or more each year. While you might save money by handling your bookkeeping, it will take more time.

The least expensive professional accounting services frequently cost $100 per month or more, though costs vary by region. These services entail categorizing expenses and integrating your records and bank account. 

Hiring a bookkeeper will help you save time that could be used to expand your business, even though it will increase your overhead.

For a small business with fewer than 10 employees, payroll services which typically charge per person or check, may cost several hundred dollars per month. Payroll processing services are more expensive than doing it yourself, but they are less likely to run into compliance problems since they have staff members committed to staying current on laws and regulations. 

It also gives you access to the records and information you need to file your taxes or submit a loan application. You will need to construct these independently or have your accountant do it if you don't have a payroll provider.

Some accountants may charge as little as a few hundred dollars for straightforward small business tax filings, but costs for more complex enterprises or services can quickly top several thousand dollars.

How Complicated Is Your Company?

Do several states support you? Do some contract clauses, such as rebates and returns, potentially affect your money and taxes? Do you have a lot of inventory or capital assets that need to be depreciated? How much of the industry is regulated? Any one of these variables can have an impact on how complex your tax position is.

Bookkeeping, payroll, and tax returns are the three aspects of taxes that some small firms may manage independently. Others will require direction. Talk with your lender about what other businesses in your field and similar sizes are doing to determine what is best for you and your company.

Conclusion 

In conclusion, it might make sense to do your taxes if you are a small business owner with a relatively simple tax situation. However, if you want to avoid the hassle or the risk of making errors, or if you have a more complex tax situation, it is probably best to hire accounting services in Loganville, GA, and Watkinsville, GA. Some online tax preparation services can assist with your taxes and are usually very affordable.

Acuff Financial Services is dedicated to assisting you in pursuing long-term financial success. We have offices in Loganville and Watkinsville, Georgia. Contact us immediately for accounting and payroll services!