February 1, 2022
Candace J. Dixon
While professional tax preparation can save your business time and money even duing normal years, it’s especially helpful during the times of COVID-19, which is unfortunately still affecting us all in one way or another. As you work to help your business weather the storm, chances are you don’t have time to spend researching the latest IRS updates or reading the tax code, and any government grants and loans or other tax relief that you received may only add further complications to your filing. Staying on top of the latest tax guidance is a very important part of income tax preparation now though, with all of the changes, some temporary, some permanent, some even surprising.
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Another factor that comes into play this year is still Social Distancing or wearing a mask. While you may not mind going out, professionals in your area might be working remotely, some even permanently. You have the option of hiring a professional and working with them remotely to get your taxes filed. That means no face-to-face interaction, which is a good thing because it will save you time and ultimately expense.
Here’s more of what you need to know about hiring someone to do your taxes remotely, from what qualifications to look for to how much you can expect to pay:
Why should you hire someone else to do my taxes for me?
If you’re used to filing your own taxes, the first time paying someone to do them for you can be a mental hurdle. While you may find it difficult to justify the expense up front, having a professional file your taxes comes with three major benefits:
It will give you more time to focus on your business
You could potentially save yourself hours, days or what could even add up to multiple weeks of work by having someone else prepare and file your taxes. That’s time you could invest in your own customers or clients or some other aspect of your business. While it pays to be choosy when selecting a tax professional, ultimately there are hundreds, if not thousands, of people who are qualified to do your taxes, but you’re the only one who can run your business the way you want to.
Having someone else file taxes for you could be cheaper than doing it yourself
Try to give yourself an hourly rate. How many hours a week do you work for yourself, and how much do you earn? Then, look at how many hours it takes you to file your taxes. Multiply those hours by your hourly rate. Don't forget to add some extra time for researching the tax updates because of COVID-19, or any random event that could go wrong. What does the total come to? There’s a good chance it’s less expensive to hire a professional than to pay yourself, figuratively speaking, to do taxes.
Tax services help prevent filing errors
Small mistakes filing can result in major penalties if they’re caught by the IRS. Also, it could cost you refunds or credits that you didn't know you had coming, or the price of a mistake you may make, even with the best of intentions. A tax professional may be able to find expenses for you to deduct or credits for you to take that you might have overlooked. That can definitely save you money in the long run. Most tax professionals have to take a mandatory amount of continuing professional education each year to keep state or federal professional designations they hold. They're likely to take it no matter what to keep up with the ever changing tax code.