face it… A properly prepared tax return was always important. No matter if you are single, married, have children, don’t have children, work for a large company or are self employed, preparing your taxes properly can make a big difference. making sure your taxes are properly prepared ensures, not only that you get the right deductions and receive the maximum amount of refund owed to you, but it also makes sure that if you owe taxes, you won’t end up overpaying. So no matter which way you look at it, proper preparation of your taxes is very important and can actually save you money!
This leads us to the very important question…. “How do you make sure that you get your taxes done properly?” Well here are some things you should consider. First of all, no matter what your filing status is, unless you are a tax professional yourself, it is always best to find a tax professional that you trust to prepare your returns. Some people work off the idea that preparing and filing their own taxes is easy and it saves them money. In a very few cases, this might be true but for the vast majority of people, preparing and filing your own taxes may actually be more costly.
Almost every year, some portion of the tax code changes. If you are not a tax professional you, more than likely, will not be aware of the current years’ changes and not knowing the rules will not be an acceptable excuse should you be audited and mistakes are found. If you happen to overpay your taxes, that probably won’t be a big deal, but do you want to chance that? You want to be sure that you get back every dollar that you are entitled to. In the worst case scenario, should you underpay your taxes; that could lead to expensive penalties, court costs, attorney fees and even jail time. Why run the risk. Tax professionals are kept up to date with all the changes of the tax code and the nuances of the ever changing rules, so they are the best option when it comes to preparing your taxes properly.
If you own a business, the preparation of your taxes gets much more complex. You now have to not only file your personal taxes (which will include salaries, bonuses and any other dividends that you have paid yourself from the company), but also your corporate tax returns. Every item that you own, be it stocks, bonds, annuities, property (ie furniture, office equipment, vehicles, etc) or real estate (residential or commercial, personal or investment), will all have to be taken into consideration as well. A tax professional will be able to help you understand exactly what is and what is not deductible, how much you can deduct for each type of deduction and how best to structure your finances so that you only pay what is rightfully and legally due and no more. They can also advise you as to where your monies should be stored (and how much) for maximum tax benefits and protection.
Especially if you are starting a business, a good tax professional should be one of the first things that you acquire. They can be very beneficial in assisting you with the financial foundation of your business including payroll services, accounting, bookkeeping, sales tax, business planning and more. This will ensure that your business has a solid foundation to build on and give you a better chance for success.
It is important to know which state your tax professional is licensed in. Choosing someone that is not licensed in your state could prove costly. Secondly, ask if the person you are dealing with is a CPA. A Certified Public Accountant (CPA) is the statutory title of qualified accountants in the United States who have passed the Uniform Certified Public Accountant Examination and have met additional state education and experience requirements for certification as a CPA.
By: Robert Lathan
