4 Reasons To Not DIY Your Tax Return For Your Small Business

As a small business owner, you may be used to taking the DIY approach. After all, you’re most likely a marketer, financial director, HR manager and payroll administrator, to name but a few of your many responsibilities. Although your business may be small, there’s one area that really does call for professional help - and that’s filing your tax return.

Let’s take a look at four of the main reasons you should not do your taxes yourself:

1. You Are Not a Numbers Person

We would all like to believe that we are good at absolutely everything, but the truth is that not everyone is good with numbers. If you do not have an affinity for math, then doing your taxes yourself is probably not the best idea.

Even if you’re competent enough at everyday calculations, taxes are a whole different ball game. Preparing your taxes is a very complex process; there is a reason that Certified Public Accountants and Enrolled Agents have to spend so much time studying before they are eligible to take their respective certification exams. And with both certifications, continuing education is required each year.

But, the bottom line is that a simple mistake on your tax return can cause you to pay the wrong amount of tax and even result in harsh penalties that can seriously threaten your small business. It really isn’t worth the risk.

2. It’s a Waste of Your Time

Taxes are notoriously time-consuming and as a busy business owner, your time is a precious resource that you can not afford to waste. After all, the time that you spend doing your taxes is time you can’t spend growing your business.

It is important to sit down and think about how much your time is actually worth before you waste it trying to figure out your taxes. Think of time in the same way as you think of money, and learn to invest it wisely.

3. Tax Laws Change Constantly

Tax laws change all the time and it can be incredibly difficult to stay on top of all the latest rules and regulations - especially when you already have a business to run.

When tax season rolls around, the chances are you will not know about all of the latest changes which could lead to you making mistakes on your tax return or missing out on new opportunities to save money.

It’s an accountant’s job to keep up to date on any changes and then take advantage of these opportunities to save you money, so that you pocket as much of your income as possible.

Remember that a quality accountant will always save you more than their fees!

4. The Internet is Full of Misinformation

In this day and age, the DIY approach to any task usually involves several Google searches. The problem is that although the internet is a wonderful resource, it’s full of incorrect or outdated information.

As already mentioned, tax laws and deductions change all the time. So the article you are reading may no longer be accurate. Additionally, tax rules may be applied differently in different industries. For example, a hair and makeup specialty salon can expense the makeup they buy for use with their customers, but as a lawyer, you cannot deduct makeup that you buy to wear to your office.

So you might end up making a mistake because you read advice that doesn’t apply to your business.

Sifting through all of this information and checking for accuracy is a huge time-consuming task. You are far better off working with a tax professional who has relevant experience within your specific industry. That way, you can have your questions immediately answered by someone who knows what they’re talking about and won’t have to waste time falling down Google rabbit holes.

Summary

The needs of every business are different, but if this article resonates with you then you should consider hiring a tax expert when tax season rolls around.

A great tax expert is an investment in the financial health of your business, and will undoubtedly save you a significant amount of time, money and stress in the long run.

If you have any questions, please visit my website at www.ProfitScaleThrive.com.