As a business owner, you already know that you are obligated to pay taxes. However, the process can often feel overwhelming, especially if you’re unsure whether you are paying the right amounts. You also have to contend with tax law, which is almost endlessly complex.
That’s why it makes sense to work with a tax business consultant. These professionals can use their expertise in tax law and related processes to work with you and help your business maintain compliance throughout the year.
What is a tax business consultant?
As the name suggests, a tax business consultant is a professional accountant that is particularly well-versed in tax return matters. They use their knowledge of how the tax system works to guide businesses through the various tax implications for informed decision-making.
Keep in mind that a tax consultant is not the same as a tax agent. A tax agent is primarily concerned with your business’s compliance with tax law, whereas a tax consultant leverages their expertise to help you pay less tax.
Of course, a tax consultant can also work as your tax agent, helping ensure that you meet your tax obligations and that you’re not paying more than you should.
How can a tax consultant help your business?
For many small business owners, hiring a consultant, or more specifically a tax business consultant may feel like an unnecessary expense. Here are three reasons why it’s actually a great idea.
1. Minimizing your tax burden
As a business owner, you’ve already got so many business expenses to deal with, so it’s only natural to want to minimize your tax liability. One of the best ways to achieve this is by making sure all tax-deductible expenses are included when filing your taxes. This lowers the amount of income that can be taxed, which effectively allows you to pay less tax.
Unfortunately, there are still many business owners who are unaware of this and so they end up paying much more in taxes than they should. A tax consultant can help you identify the tax deduction opportunities available and take advantage of them to save you money.
Another way a tax consultant can help minimize your tax burden is to ensure that your tax returns are filed on time to avoid penalties and interests.
2. Save you time
Tax preparation and filing can be super complicated, not to mention, uninteresting when you have a business to run. And because it is not a task that you are used to, there’s a good chance that it will take a long time to complete.
With a tax consultant in your corner, all those wasted work hours could be put to better use improving your bottom line.
3. Represent your best interest
Whether it's researching tax laws to ensure your business is compliant with the latest tax regulations, assisting with tax planning, providing professional tax advice, or helping set up your business operations, a tax consultant is a professional who’s paid to represent your best interest.
If for some reason your business is subjected to an audit by the IRA, you’ll be glad to have a tax consultant on your payroll. They’ll represent you during the audits to ensure that all the calculations are done right and that the correct information about your business is used.
Book your next tax consulting appointment with KRD Tax & Consulting
KRD Tax & Consulting is a tax consultancy service based in Broomfield, CO. We take a holistic approach to solving our clients’ tax and accounting needs so they can achieve greater success in their business.
Book your consultation with our tax experts today by calling 720-524-4063 or through our contact form.