As business owners, our tax filings are a lot more complicated. It is to our advantage, however, to go through the extra effort, because tax laws are written for the benefit of the business owner. If we look at the root of why this is, we will discover a couple of interesting facts. First, businesses are what keep our economy running. If businesses are taxed more, profits are down, more employees are laid off of their work, fewer products are manufactured and purchased throughout our economy, etc. It is a downward spiral. However, if it is made easier for businesses to become profitable, then more and more businesses succeed, giving more and more employees jobs, etc.
The second reason is that the large majority of our lawmakers are business owners themselves. They understand the above importance of business, as well as have a vested interest in their own business. The majority of lobbyists out there are businesses as well. If a law is passes, it more than likely had a lobbyist behind it.
This being true, do business owners need to become experts in tax deductions, tax law, or tax documentation? Well, that is where tax professionals come in. It would be unwise for any business owner to neglect the use of tax professionals. Not only because they will probably save the business owner a lot of money on their taxes, but to make sure everything is done properly and legally. Taxes are their expertise, business should be ours. If an audit is performed and discrepancies are discovered, how much better would it be to have a professional on our side to work out our tax problem resolution?
When selecting a tax and accounting professional, we want to find one who is aggressive in understanding the law, but conservative in knowing not to push the envelope. The tax laws are created for the benefit of businesses, and there is no need to try and cut corners or cheat the system. The best way to find an experienced accountant is through referral from those in our same industry. Alternatively, we can check the resume's of these tax professionals to ensure that they have had many years of experience in working with our type of business. When you find a good tax professional, look at his track record. How many audits were performed on their clients. If zero, you know that he is not aggressive enough. If a lot, research the results of each of those audits. There is nothing better in predicting success, than past results.
The second reason is that the large majority of our lawmakers are business owners themselves. They understand the above importance of business, as well as have a vested interest in their own business. The majority of lobbyists out there are businesses as well. If a law is passes, it more than likely had a lobbyist behind it.
This being true, do business owners need to become experts in tax deductions, tax law, or tax documentation? Well, that is where tax professionals come in. It would be unwise for any business owner to neglect the use of tax professionals. Not only because they will probably save the business owner a lot of money on their taxes, but to make sure everything is done properly and legally. Taxes are their expertise, business should be ours. If an audit is performed and discrepancies are discovered, how much better would it be to have a professional on our side to work out our tax problem resolution?
When selecting a tax and accounting professional, we want to find one who is aggressive in understanding the law, but conservative in knowing not to push the envelope. The tax laws are created for the benefit of businesses, and there is no need to try and cut corners or cheat the system. The best way to find an experienced accountant is through referral from those in our same industry. Alternatively, we can check the resume's of these tax professionals to ensure that they have had many years of experience in working with our type of business. When you find a good tax professional, look at his track record. How many audits were performed on their clients. If zero, you know that he is not aggressive enough. If a lot, research the results of each of those audits. There is nothing better in predicting success, than past results.
Source...