There are a number of tax programs online that will help you do your personal income taxes by simply entering a bit of data. Unless you have inherited a large sum of money, bought or sold significant real estate or have a lot of income from the stock market, using one of these programs can save you time and money. However, if you own a business, even a small one without any employees, it is a good idea to have a professional do your taxes. If you think you can do them yourself, with the aid or an online program, here are a few things to consider before actually transmitting your return to the IRS.
Tax laws are constantly changing. In years past, there have been changes made to tax laws after some businesses had already filed for the year. This meant that all those tax programs were not up-to-date. While it would be hard for the IRS to fine you if you filed between the first of the year and the time the new law came out, you may have paid more than you needed to. Professionals keep abreast of all upcoming changes and when they will be implemented.
Depreciation, Account Receivables and Account Payables
While the tax programs do take depreciation into account, most of them do not consider exactly when the equipment was purchased, so often there is a general amount deducted. You may have been able to deduct more. Of course, you may have deducted too much this year, and then have the figures off for next year's return.
The date a debt was created or credit extended can also weigh in on your tax return. Sometimes, business people fill out their tax forms before all the accounting has been done for the year. A business tax professional will ensure that all your figures are correct. He or she will wait until all the invoices and receipts have been added to your books. In addition, any receivable that is considered to be a write-off will need an end-of-year adjustment made to your sales income.
If you want to be sure that you have paid enough business income tax, and yet not overpaid due to changing tax laws or incomplete accounting issues, your best bet is to use a professional tax preparer like Wiggins, Smit, Burby, Reineke, & Company P.A. If you want to do them yourself, get all the paperwork filled out, and then have a professional look things over before sending things to the IRS. You will be surprised at how much money you can save when a different set of eyes checks out your numbers. In most cases, the cost of paying for a second opinion is going to be covered by the amount he or she saves you.