How an Accountant Can Help Your Business Pay Less in Taxes

If you’re a small business owner, you may have overseen every aspect of your finances since the beginning. That’s understandable in the earliest stages of your company’s existence. But as a business matures, economics gets more complicated — especially concerning your business taxes.

Tax laws change  frequently in the U.S. Some of these changes are sweeping and significant. But others aren’t quite as noticeable. They involve minor adjustments to existing tax codes at the state or local level. It may be impossible for owners to keep up with all the  slight alterations, but they could largely affect your business fate.

That’s one of the biggest reasons small businesses rely on outside accountants. A qualified CPA or accredited tax advisor can help your company in ways that are difficult, at best, for you to do on your own. Here are just a few ways they can help your business pay less taxes.

Tax Planning

Taxes aren’t issues that arise just once a year. They impact small businesses in incremental ways all year long. An accountant takes a year-round approach to taxation issues. They can help owners make wise decisions that help them pay less taxes at any given time.

Updates to Tax Codes

Part of an accountant’s job is to stay on top of changes to tax laws. Every amendment to current tax codes can impact your business. Not all these laws are well-publicized or reported. An accountant who knows them inside and out will help you react to them more efficiently and pay less taxes, giving you a  significant business edge.

Encouraging Growth

Hiring an accountant at the right time can help you manage your company’s growth. They can determine what kind of entity — sole proprietorship, LLC, S corporation, etc. — will be the most advantageous for you regarding taxation.

Managing Tax Credits and Strategy

Thanks to their intimate knowledge of tax laws, an accountant can find unexpected opportunities for credits and incentives that help you pay less taxes. Many of them are specific to your industry, so they’re not easy to find  independently. A CPA can help you find them and advise you on potential money-saving strategies like tax deferrals and deductions.

Ensuring Tax Compliance

An IRS audit can be devastating to a small business. Besides exposing possible liabilities, it can take up excessive time that could be better spent running your company. An accountant can help you stay on the right side of compliance issues and can manage affairs in case of an audit.

When Should Your Business Hire an Accountant?

Now that you understand the tax benefits of hiring an accountant, when is the right time to bring one aboard? The short answer: anytime.

It’s never too early or late to hire a CPA to manage your finances and pay less taxes. Doing so before you launch can help you optimize your tax position from the start. Hiring one after you’ve been in business for a few years can help reposition your company for success and continued compliance.

Want to learn how we can help your small business? Contact us today!