5 Benefits Of Hiring An Accounting Firm

Paying Fewer Taxes

Benefits Of Hiring An Accounting Firm

Whether you’re an employee or a business owner, there are many things an accounting firm can do to ensure you’re legally reducing your tax liability to the fullest extent. 

An accounting firm can help you with tax planning, recommending tax saving strategies and showing you what you can write off, so that you maximize your after-tax income. 

Accounting firms stay up-to-date with all of the latest tax laws and regulations – given the complexity of the tax code and the often esoteric language used in it, this is something most people simply don’t have the time or mental energy to do.

Tax planning is important to do throughout the year – not just when tax season approaches – and an accounting firm can stay on top of this.

When it’s about time to pay your taxes, they can help you prepare your income tax return. Many accounting firms not only help construct and check tax returns personally, but they can also run them through computer software that can identify problems as well. They can also file your return electronically so that you get your refund faster.

Professional Business Accounting

Benefits Of Hiring An Accounting Firm

If you’re a business owner, you’re probably busy – you don’t have time to keep your own books. An accounting firm can do that for you so you can get back to running your business and generating profits.

Either monthly or quarterly, an accounting firm can:

  • Reconcile your bank account.
  • Generate a balance sheet.
  • Generate an income statement.
  • Clean up your general ledger.
  • Offer consultations.

These are things that need to be done on an on-going basis as aspects of your business change.

Resolving Problems With The IRS

Benefits Of Hiring An Accounting Firm

No one wants problems with the IRS. An accounting firm can help take the monumental stress of this problem – even if it’s a full-on tax audit – off of your shoulders.

When it comes to taxes, many people aren’t even aware that their tax returns could trigger an IRS audit. Ignorance is bliss, until the IRS finally catches up to you – which can take years – and once they do, they will do anything in their power to get back what you owe them. 

Problems with the IRS can result in wage garnishment, bank account seizure, property seizure, home liens, interest, and even prison time.

Typically, problems with the IRS result from:

  • Not filing tax returns for a number of years.
  • Owing Back Taxes.
  • Having problems with payroll tax.

An accounting firm can offer a number of strategies and solutions. Professional CPAs can even legally represent you before the IRS. 

While some problems with the IRS will result in consequences regardless of what you do, a professional accounting firm can help eliminate many of them and minimize others.

Effective Estate Planning

Benefits Of Hiring An Accounting Firm

Your personal estate consists of things such as your:

  • Home and other real estate
  • Vehicle
  • Bank accounts
  • Personal possessions
  • Life insurance
  • Investments

An accounting firm can help you with personal estate planning, giving you more control over what happens to your personal estate after you die. By working with you, they can help you construct legally binding written instructions for the maximum benefit of those you love and care about; how your personal estate is transferred – be it to people or organizations – can be up to you.

Not only does personal estate planning help you decide who gets what, but also when they get it. It also allows you some control over legal fees, taxes, and court costs.

Effective estate planning requires in-depth knowledge of the legal processes involved with it, which is exactly why you should hire an accounting firm to help you in this regard.

Benefits of hiring an accounting firm for estate planning include:

  • Long-term planning – this isn’t something you do last minute, it’s a long-term endeavor. Things change, both in your personal life and legally, and your personal estate plan should be regularly updated to reflect these changes.
  • The elimination or minimization of court costs, legal fees, and unnecessary taxes.
  • The assurance that your business is transferred to the appropriate person or party at the time of retirement, disability, or death.
  • The assurance that your family is provided for via life insurance after your death.
  • The drawing out of instructions for your care if you become disabled and unable to work or take care of yourself.
  • The assurance that your family members with disabilities get the care that they need (specifically in a way that does not disrupt any current government benefits they may have).
  • The naming of guardian or inheritance manager for minor children.

Strategic Business Formation

Benefits Of Hiring An Accounting Firm

An accounting firm can help you establish the ideal plan of action for your specific business. Many new business owners are set back by common pitfalls that an accounting firm can help them avoid.

Benefits of hiring an accounting firm for business formation include:

  • Preparing an initial business plan.
  • Deciding what your start-up capital needs are.
  • Pinpointing start-up capital and backup sources of capital.
  • Selecting the ideal business structure.
  • Selecting the right accounting software.
  • Determining a cash flow budget.
  • Maximizing your cash flow by establishing billing and collection procedures.
  • Cost control and monitoring.
  • Maximizing tax reductions.
  • Ensuring that all state and local licenses and permits are filed.
  • Ensuring you have a Federal Employer Identification Number.
  • Ensuring you’re filing payroll taxes correctly.
  • Ensuring compliance with all employment laws.
  • Identifying business insurance needs.
  • The development of a solid Partnership Agreement.