Tax planning can be one of the most frustrating tasks for small business owners. There are lots of details to consider, and mistakes in the books frequently go unnoticed until it’s too late—at which point, your business has real problems. In one survey of small business owners, 40% agreed that managing bookkeeping and taxes was their least favorite thing about owning a company.
The good news is that small business owners have lots of options these days when it comes to tax advice. You don’t have to—nor should you—tackle the process alone.
The Benefits of Outsourced Tax Prep
Online tax preparation works by connecting you to a licensed small business tax advisor who can help you corral your financial data. They’ll assess your accounting software, past returns, and overall financial health to help you meet your goals at tax time:
- Pay less on annual returns
- Save the time and hassle of preparing returns by hand
- Full assurance that your returns will be handled correctly by a professional
We’re talking about peace of mind, here. It’s hard to put a dollar figure on the comfort that comes from knowing your small business taxes will be done right. (Although the time you’ll gain from outsourced tax prep is certainly quantifiable!)
Small Business Tax Advice
Primarily, online tax services act as your “control tower” for every aspect of small business tax help. They’ll file your returns for you, yes, but they’ll also outline the process for your benefit and give you one-on-one guidance on your tax questions.
They’ll make sure your business is classified correctly in the eyes of the IRS, and that you’re filling out the right forms as required by that classification (including common pitfalls, like proper allocation of Schedule SE self-employment taxes).
This breadth of knowledge is one of the best things about a partnership with a small business tax advisor. A tax planner will be familiar with IRS expectations, filing due dates, understanding which financial records will be required to prove deductions, and when tax extensions might be appropriate.
It’s like having a personalized small business tax planning guide right at your fingertips, which is precisely why outsourcing is so popular. In one survey, 71% of small businesses owners outsourced their tax preparation to experts.
Finding the Right Small Business Tax Help
There’s no shortage of small business tax guides out there, so make sure you choose your partner with care. If you’re looking for help, a good place to start is with your professional network. Ask around and see if you have any business partners who already outsource, and see if they’re happy with the service. A survey by Bill.com found that nearly 80% of companies that outsource accounting will happily refer their accountants, so don’t be afraid to ask around.
You shouldn’t have to look far to find an online tax service that can meet your needs. And when you find the right partner, you can make those laborious tax planning sessions a thing of the past—permanently.
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