Welcome to Selfmade Finance School, our new money series with Block Advisors to help small business owners with their tax, bookkeeping, and payroll needs year-round. This week, we answer one of the most common tax season Q's of all… do you really need an accountant?
There are certain things that I do not do for myself. I don't color my own hair. I don't inject my own Botox. I don't do my own taxes. I should probably just end things right here and go unload the dishwasher but I am not known for my brevity. So here are more reasons why you should consider hiring someone to help you with your taxes this year:
2020 Was Really Weird
If you are a business owner, you know how insane 2020 was. With the pandemic came the CARES Act and the lending programs — PPP, EIDL … all the letters. And with these lending programs comes along all new rules and regulations. If you tapped any of these programs, you may want to seek professional help before filing your taxes.
Hiring Someone Can Save You Time and Money
I am not sure about you, but I am short on time these days. I am also not an expert on the ever-changing tax code, tax deductions, tax credits, or the best corporate entity to have to suit my business. You know who are the experts? H&R Block and Block Advisors! Not all taxpayers have the same filing needs. But for your small business owners, I recommend finding someone with extensive training and small business experience.
"It's important to know that not everyone specializes in taxes. However, at Block Advisors, our small business certified tax pros most certainly specialize in taxes and are always up to date on federal, state and local tax laws to help you get every small business credit and deduction you deserve," said Cathi Reed, Block Advisors Regional Director. "Remember, taxes aren't the same year to year. There are always new changes to the tax code, new forms and new credits/deductions to consider – especially this year with stimulus impacts – so it's natural to have a lot of questions. We're here to help provide the answers."
The right expert may also be able to help identify ways to reduce your income via deductions and credits. Many times I run into people who say "well my dad has been filing my taxes for me for years" or "my dad's accountant has been filing my taxes for me for many years". Quite frankly, I am not sure which scenario is worse. I am sure your dad and his accountant are awesome but you might benefit from seeking advice from an expert you choose based on their ability to manage your small business taxes. Tax preparers have a range of backgrounds, so ask questions that vet them based on your unique needs.
Getting Help Year-Round
A few months ago, we received a dreaded letter from the IRS stating that we owed a huge amount of money from our 2018 filing. We immediately sent the letter to our accountant. Within 10 minutes, he responded with a plan of action and then he hand-held us through the process of fixing the issue. In the end, no one freaked, cried or hyperventilated and we only owed a tiny amount to the IRS. If you have questions or need help, Block Advisors tax pros are available year-round to help keep you and your business on track.
If You Owe Estimated Taxes, It Can Help to Have an Expert In Your Corner
When business owners ask me what my biggest piece of advice is for entrepreneurs, I tell them that it is crucial they have expert help. The second piece of advice is that if you are self-employed, a contractor, a freelancer or someone who only earns 1099 income, you should be paying estimated quarterly income taxes. If this is your situation, you should have a tax pro help to manage this for you. Paying quarterly taxes is complicated and is nothing to mess around with. Hire someone! Block Advisors is a great option. Their team of advisors will put a financial lens on your small business, guiding you to the best outcomes. That way, you can stay focused on what you love vs. taxes.
Final thoughts: As your business grows and changes, you need to wave in professionals to help you to do the things that you don't have expertise in. Making sure you are being efficient with your taxes and making sure you have a professional to help you through it is crucial to building a strong business. Get some help. Do not delay!
*Small business tax professional certification is awarded by Block Advisors, a part of H&R Block, based upon successful completion of proprietary training. Our Block Advisors small business services are available at participating Block Advisors and H&R Block offices nationwide.
The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regards to your individual situation. Comments concerning the past performance are not intended to be forward looking and should not be viewed as an indication of future results. Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. O'Keeffe Financial Partners and any other entity listed herein is not affiliated with Kestra IS or Kestra AS Investor Disclosures: https://bit.ly/KF-Disclosures
Check out more Selfmade Finance School content below:
4 Tips For Navigating The Pandemic Like A Small Business Pro
Photo by Christiann Koepke/Windows on Unsplash
