As a small business owner, one of the most important things that you must do is keep track of your finances. The reason why is because all of the money that is related to your business will have to be reported to the Internal Revenue Service (IRS). By keeping poor records, it is possible that you will get audited by the IRS and can end up in legal trouble. It is worth hiring an accountant to assist with managing several aspects of your business finances to make sure your records are accurate. This article will give you a general idea of some of the ways that an accountant will be helpful to your small business.
Track Money Coming into Your Business
An important service that an accountant can provide is keeping track of the money that your business brings in. The worst thing that you can do during tax season is report a lower amount of business income than you actually received. The reason why is because in the eyes of the IRS, it will seem as though you are trying to commit fraud to get out of paying all of the business taxes that you owe. If you opt for putting a professional accountant in charge of managing your business income, it is more likely that your reported income will be accurate. Keep in mind that inaccurately reporting your business income to the IRS can lead to time in jail depending on your specific case.
Record What Your Employees Are Being Paid
You must keep track of how of your business income is being used to pay employees. An accountant has the skills that are needed to keep track of what each of your employees is being paid, as it must be reported to the IRS. Basically, the IRS must have the information to make sure your employees are accurately reporting their personal income during tax season. An accountant will not only keep accurate payroll records, but you can also put him or her in charge of handling the checks or direct deposits when paydays come around.
Prepare Your Tax Documents for the IRS
When tax season comes around, an accountant can handle everything that is involved with preparing your tax documents. For example, he or she will thoroughly review all of your financial records to make sure they are accurate before reporting anything on the documents. Other than preparing your tax documents, an accountant will be handy in the event that you are audited after the documents are filed. He or she will help you prove to the IRS that what you reported is accurate.
Contact a group like The Callen Accounting Group, PLLC to learn more.Share