Nobody says that you can’t file and manage your own taxes for your small business. However, it’s a really tedious and boring job. If you don’t enjoy calculating your own taxes, you can always hire an accountant. Moreover, there are some factors that can make filing your taxes more complicated. In instances like the ones listed below, hiring a tax accountant for your business in Salt Lake City may be the best option:
You Have More than One Source of Income
You may find it hard to let someone else take care of your taxes, especially if you’ve always done it on your own. However, taxes become more complicated when you are self-employed with multiple sources of income. An accountant can help make sure that you do not pay more than you should on your taxes. Additionally, in case of an audit because of a calculation error, an accountant can help handle all the fines and interests.
You Are Self-Employed or Have Your Own Business
As an owner of a startup, it’s only natural to want to do everything by yourself to save every penny you could. However, do not scrimp when it comes to hiring an accountant because they can help you correctly set everything up, from preparation to launching your business. They can also assist you in running and managing the finances of your business. You don’t necessarily have to hire an in-house accountant. You can always hire from a third-party accounting company only when you need one, like when it’s tax season. An accountant can also help you minimize taxes by depreciating real estate or business assets.
You Receive K-1s
Individuals who are a shareholder or a partner in an S corporation normally receive a K-1. Likewise, some exchange-traded funds (ETFs) also issue K-1s. K-1s are typically easy to include in tax returns. But if it still confuses you, you can always seek the help of an accountant who has more experience dealing with tax computations.
You Became the Recipient of a Large Inheritance
So someone just left you with a significant inheritance. Before you celebrate, you first need to take care of all the legalities and inheritance taxes that you need to pay before the inheritance can be transferred to your name. However, it’s not as easy as it sounds. If you don’t know what you are dealing with, you may end up paying more than you should in inheritance taxes. A tax accountant can help you deal with such taxes and may even minimize your tax liabilities even in future years. The cost of hiring an account will vary depending on the complexity of your estate.
You Want to Send a Large Monetary Gift
Receiving a huge inheritance comes with certain financial implications. It’s the same with sending someone a large amount as a gift. An accountant can advise you on how to reduce the taxes that you need to pay when sending a monetary gift. For example, they may advise you to send the gift using your retirement funds or as a charitable donation.
Hiring a tax accountant does come with certain expenses, but the benefits you get definitely far outweigh the costs. They won’t just help you calculate and file your taxes. They can also give you valuable pieces of advice on different ways to reduce your taxes in the long run.