Protect yourself and your business from any legal ramifications by entrusting tax preparation and any tax-related tasks to licensed professionals only. Being your own boss indeed has a long list of perks, but as they say, with great power comes great responsibility. One of the seemingly endless responsibilities is settling tax liabilities.
Tax is a delicate matter. As tedious and complicated as taxes could get, no one – not even public officials or private entities – is exempted. Your finances are the soul of your company, so you must only entrust your accounting needs to reliable and trustworthy professionals.
The Common Reasons for Hiring a CPA Tax Accountant
If you are running a business, you must hire certified tax accounts or licensed tax agents to manage your taxes. This is because, by nature, tax laws and regulations are continually changing. Unless you are willing to pay for fines and penalties, you have to ensure everything is done right the first time.
Most entrepreneurs hire tax accountants for consultation. They seek their professional advice and objective insights on how to file or process their corporate taxes. They consult licensed agents to decide whether they must continue paying their taxes as C-Corp. It is high time to switch to S-Corp.
Virtual tax consultants’ tax planning services could be a part of the overall business budget planning services. These experts provide forecasts based on the company’s previous financial records and their current standing.
Once there is a solid plan, the virtual firm could start preparing for quarterly filing or the End of Financial Year (EOFY) reporting. This is where they cross-check their resources, validating if their processes and methods are still updated following current federal and state laws. Tax rules and regulations are constantly changing so this stage is crucial.
The tax preparation includes collating documents, systematizing files, collecting data, and gathering information. All relevant transactions – incoming or outgoing – must be well-taken into consideration.
The actual processing entails categorizing, calculation, and balancing. This is where virtual accountants come up with the estimated amounts of quarterly taxes to be settled, as well as filling out the required legal forms. During the EOFY, they compare the actual liabilities versus the amounts determined to provide accurate taxes that the company is required to pay.
Virtual taxation and accounting firms have an edge on this stage as they have access to premium software and top-rated systems. Automation is a massive help in processing time-consuming tax-related tasks.
The final stage of settling tax liabilities is the actual filing process. This is where the accountants submit the completed forms to the Internal Revenue Service (IRS) – manually or electronically – on behalf of the company.
Once stamped, they compile all the processed reports and records. They collate and store all data in a safe and secure database for future reference. These details and information will help process the EOFY tax returns or for next quarter’s tax settlement.
It is understandable if you are one of the many people who dread tax and anything related to it. However, whether you like it or not, there is no escaping from it. You do not have to worry, though, as there are licensed and qualified virtual tax accountants who could accomplish these tasks for you.