How tax compliant is your business? If you run a small business without a fully-fledged finance department, there are high chances of running afoul of tax laws. As an average entrepreneur, you may have an idea of the taxes you should pay but may be ignorant of some specific tax codes. It is prudent to use a tax preparation service if you have little knowledge of tax matters. Why is it a good idea to use a professional tax preparation service?

In business accounting, there are two ways to calculate profits and losses. These are cash basis and accrual. Each method has its pros and cons, and it's wise to learn a bit about both before committing to one. Definitions Cash basis accounting is a process where profits and losses aren't booked until money officially exchanges hands. Accrual places profits and losses on the books the minute the transactions are registered.

As a business owner, you have dozens of tasks that require your attention each day. You lack the time in your typical workday to handle practical matters like taking care of your books or filing your taxes. However, you also cannot let these important obligations fall by the wayside or simply not get done. Instead of trying to handle them yourself, you can outsource them to one of the certified public accountants in your area.