Taxes can be tricky enough when you are just doing your own taxes, but that trickiness can increase exponentially when it comes to taxes for your small business. You could try to do everything on your own, but then you are at a higher risk of missing something that could hurt you. The best thing you can do is hire someone who can help you with your taxes and help you set everything up so that your business has a better way to handle all your tax needs. There are different kinds of professionals that you can hire to help you. Those include CPAs and licensed tax preparers. You should find the differences between the two tax services to decide who you want to work with.
Certified Public Accountant
A CPA has gone through college and gotten a degree in accountancy. After that, they had to pass tests to be licensed as a CPA. They can work for themselves, but CPA firms also have several CPAs. Those firms can specialize in helping businesses of different sizes or with individuals. CPAs can do more than prepare taxes for your business. They can also help you with payroll, accounts payable and receivable, and setting up budgets for your business. A CPA is someone you can work with year-round, which can make it easier when it comes to tax season.
Licensed Tax Preparer
A licensed tax preparer hasn't necessarily gone to college to become a tax preparer, but they have had classes in handling taxes and tax information. Before they can be licensed, they have to pass a three-part test, and they have to take continuing education to keep up with everything that is changing with tax law. Unlike a CPA who can help you with other things, the only thing a tax preparer does is do your taxes. Because that's all they do, a tax preparer can focus on specific aspects of tax law. For example, you can work with a preparer who specializes in working with self-employed people.
Taxes are one of the things that you can't avoid. If you make any money, you will have to pay taxes on that money. That includes your business too. You need to make sure that you get help to file your taxes. You can choose between working with a CPA or working with a licensed tax preparer. Each has its benefits; you have to decide which one has the best benefits for you.