Taxes don’t have to be complicated. Whether you are self-employed, own a small business, or have many employees, utilizing a tax preparation service can help you avoid mistakes, save time and maximize your refund.
Types of Tax Preparation
Online Tax Filing Software
The IRS partners with services to provide free or low-cost tax filing software to persons that have an adjusted gross income (AGI) less than $73,000. They provide links and names to these preparers that offer IRS Free File services. This option may be ideal for self-employed persons and independent contractors who file 1099 forms, don’t have extremely complicated business structures and keep very simple records.
Classic Tax Preparation Services
Classic tax preparation services can reduce the headache of tax time and handle the complicated paperwork for you. You give them your business’s records and financial information and they will optimize your deductions and tax credits, and file your taxes for you. At the start of the pandemic, many classic tax preparation services moved completely online or began offering online services.
Why choose a tax preparation service?
While online tax preparation software may initially appear to be an attractive option, you will miss out on personalized recommendations and advice for future tax strategies that a professional can provide. For business owners or individuals with complicated tax situations, finding an accounting firm who will work with you on an individual basis is key.
If you aren’t well-versed in how to best prepare and file your taxes for your business, or if you aren’t up to date on the latest legislation, turning to a tax preparation service like Gift CPAs offers many benefits including:
Maximizing deductions
Tax deductions are expenses that can be subtracted from the taxes you owe. Tax experts will know what can and cannot be deducted from your taxes, which can be a complicated process that depends on what expenses you had, what type of business you own, and other factors. At Gift CPAs, you will get an expert in your field who knows how to save you the most money.
Saving time
A tax preparer will do the work for you including computing expenses, filling out forms, mailing returns, and other tax filing tasks. Hiring a tax preparation service saves you time, grants you peace of mind, and potentially saves you money when it comes time to prepare and file your return.
Avoiding mistakes
If you have a complicated business structure and try to file taxes without the help of a professional, there is always a possibility of making mistakes. If your business is audited, these mistakes can have very costly financial and legal consequences. You can ensure a lesser margin of error with the assistance of an expert and help from an experienced team familiar with your situation if you do get audited.
Finding tax credits
A tax credit is a dollar-for-dollar reduction of the income tax you owe provided by the government, based on eligibility. There are dozens of business tax credits that each have their own filing form and qualifications. Determining what tax credits your business qualifies for can be an exhausting, time consuming process. A tax preparation service will find all the tax credits that your business is eligible to receive.
Get Started Today
Gift CPAs believes that tax preparation is more than doing a tax return and filing it on time. We delve into your industry, understand the unique features of your business, research tax law, and help you make strategic decisions throughout the year that land you in a strong position when it’s time to file.
If you’re exhausted just thinking about taxes, Gift CPAs can relieve the pressure and help you develop a strategic approach to handling your tax obligations. Learn more about our tax preparation and planning services and make an appointment to meet virtually or at one of our five locations in Harrisburg, Mechanicsburg, Myerstown, Akron or Lancaster!
