Managing a business, regardless of its size or type, is no small feat. It takes a lot of effort and dedication to break through and make a profit. But to lose thousands of dollars in taxes after having worked so hard can be tragic, to say the least.
Here’s where tax services provided by a professional can come in extremely handy. Tax firms have years of experience that can help you save all your hard-earned money. They offer a range of services to small and large businesses and professionals at reasonable rates.
But first, what kinds of business taxes are there?
Each state has a varied set of taxes that businesses must pay unfailingly. However, there are four basic types of federal corporate taxes that businesses can incur in addition to these. The final amount and type of tax you pay will depend on the type of business you own and how you run it. The basic understanding of these four major tax types are as follows:
- Income tax – Barring partnerships, all businesses must file income tax every year. Businesses can use the withholding tax method and pay the taxes as the company starts to earn income.
- Employment tax – Employers must cover medicare and social security taxes for their employees. Half of this is taken from the employer, while the remaining half is paid from the employees’ paycheck.
- Self-employment tax – People who run self-employment businesses have to pay taxes that cover their medicare and social security taxes. Many people see this as an advantage as it provides them benefits for hospital insurance, retirement, and disability.
- Excise tax – Not all business owners have to pay excise as this type of tax is levied on particular types of business. It depends on the kind of business, variety of products manufactured or sold, the type of equipment and materials used, and the payments received for this type of business. For instance, there are taxes on the first sale of heavy tractors, trucks or trailers. Excise taxes include fuel taxes, air transportation taxes, and communications and environmental taxes, among others.
Types of services that tax professionals provide
Hiring a professional to manage your taxes will be among the wisest of all business decisions you can make. They can help you with all the following and more.
Saving on taxes starts right from the planning stage. Many business owners believe that they are overpaying their taxes. For some of them, this may be true. You can hire someone to start planning your taxes to avoid loopholes and financial losses. The services they essentially provide cover notary services, year-round planning, filing on your behalf, help with late filing and income repatriation. They can also help you file specialty tax forms.
Not all businesses, especially the smaller ones, can afford a separate accounting department. In such cases, outsourcing accounting to tax professionals can be helpful. They can maintain your accounting records with ease. Payroll tax filing, departmental budgeting, and financial statement preparation will all be a breeze. By doing your bookkeeping for you, they can help you set better financial goals and increase profits.
Sometimes, even businesses that do well can run into losses because they don’t know where or how to invest their money. Professional services can help you manage your money in a way that you see further gains. They can create detailed savings and investment plans to help you meet your financial goals. They also have great advice on retirement planning, ensuring you have a good amount of money to fall back on.
Filing and compliance
For a lot of people, simply looking at a tax form can cause considerable stress. That’s because not everyone understands how to go about filing their taxes. Professionals can not only explain the form to you, but they can also fill and file it for you. They will make sure your financial information is sound and check for any compliance issues. Also, they can guide you through some complicated IRS audits.
Loans, relief, and grants consultation
Businesses can sometimes go into losses for many reasons. When that happens, they may invariably need a loan. Should you need one, tax professionals can guide you through the process of acquiring a loan for your business. They have a vast amount of knowledge on different grants and relief programs. They can help businesses like restaurants, the hospitality industry, IT firms, and healthcare providers, among others.
If you own a business and are keen to know more about saving on taxes, look for professional tax services immediately