By, Mordechai Zimberg, Controller
2017 offers tax payers an additional three days before having to file your tax documents. Due to a weekend and a Washington, D.C. holiday taxes are not due until April 18, 2017. The first quarter of every calendar year causes tremendous stress for millions of business owners, individuals, and tax preparation experts. The question most ask every year is simple: why do I have to pay so much in taxes?!
The taxes, fees, insurance, and other assessments business owners must pay throughout the year have a significant impact on the growth of their business. The effective tax rate determines how much capital a business owner has available for investment in their business. Beyond that, business owners have the burden to manage their books throughout the year – accounts payable, depreciation, capital gains, and countless other items. The whole exercise is enough to drive a business owner crazy.
There are plenty of tax preparation options for business owners:
- Have the business owners continue to manage all the finance operations with an overpriced, off-the-shelf online accounting tool.
Disadvantage: Time consuming, assumes business owner knows advanced accounting principles, and can navigate the software.
- Hire employees with an accounting background to manage the day-to-day bookkeeping, payables, and receivables operation.
Disadvantage: Expensive, need to hire at least two accounting people to ensure there is a checks and balance system to avoid fraud, theft, and moral hazards.
- Outsource the bookkeeping functions to one firm and hire a Certified Public Accountant (CPA) to reconcile all the accounts and offer tax strategy advice.
Disadvantage: Must manage two separate vendor relationships, oftentimes the CPA and bookkeeper disagree on the proper classification of expenses, cash management, and oversight of the financial well-being of the company.
- Use of those Big Box tax preparation firms found on many corners around town that promise to give you.
Disadvantage: The Big Box firms typically hire junior accountants with little practical business experience. The Big Box firms promise all the services of a CPA but rarely offer any of the insight or advice.
Now there is a 5th option: work with a full-service account and CPA firm like Vantage Agora. We work with small and medium businesses around the United States and we provide the following services at a competitive rate:
- Bookkeeping and financial statement preparation
- Annual preparation of business tax returns for LLC or S Corporations
- Ongoing tax advice and planning
- Individual income tax return preparation
- Payroll tax returns processing
- Financial benchmarking
Our Certified Public Accountant provides services with over 20 years of experience. So while the old adage is true that there are two certainties in life, now Vantage Agora can help you with the taxes. Call us today at 888.246.7211 x. 127 or email us to get a quote.