Small business owner meeting with a professional tax preparer

Why You Should Hire a Tax Preparer for Small Business Taxes

5 min read • Jan 03, 2020 • Joe Kukura

A new wave of 1099 contractors and sole proprietors are redefining what it means to be a small business. But even small, independent shops or one-person operations are held to the same rigorous tax reporting standards as big businesses, and the financial penalties for getting something wrong can hurt sole proprietors a whole lot more.

The challenges of running your business day-in and day-out already take up all of your available bandwidth. Hiring a professional bookkeeper can ensure you a stress-free tax season. Plus, it’s a gift that keeps giving all year long because most small business owners have accounting questions or issues, no matter what time of year.

A tax pro can certainly help you avoid an IRS audit and save you countless hours of frustration and confusion at tax time. But a tax preparer does more than cover your liabilities with the tax collector—they can provide you with invaluable advice from their experiences with other small businesses to help you control your finances

In this digital era, accounting apps can provide direct guidance from tax professionals. These apps can also boost your business revenue in ways unrelated to taxation so you can grow your company toward more ambitious financial goals.

Why Hire a Tax Preparer

Consider the marathon sessions you spend each year doing your taxes (or procrastinating on them). Tax preparers eliminate that time commitment, as well as other significant expenses like late fees, fines, or legal issues. Sure, you’ll be taking on an added expense. But it’s a far smaller expense than the other potential costs of amateur tax prep mistakes. And the effort may find you some sweet, money-saving deductions. 

Your quarterly self-employment tax payments will be due every 3 months. A bookkeeper or tax preparer can perform cash flow forecasting far more effectively than non-financial people can to ensure you can make those payments. 

Keeping highly professional books and financial records will also help you secure additional financing if you need it, whether it be a bank loan, a line of credit, or even venture capital.

Some small business bookkeeping apps and software have affordable subscription plans that provide benefits to you all year. They’re incredibly easy to use and have dedicated teams of bookkeepers to answer questions you may have.

Small business apps and online bookkeeping services go way beyond the standard Excel spreadsheets or physical filing cabinets and ledger notebooks. Effective digital tools can help you produce financial or transaction reports to prepare your taxes, track your expenses, and create or pull up invoices in a flash. 

Find a Tax Preparer Online

The leading online bookkeeping app and platform Lendio doesn’t just capture all of your transactions and make them easy to report—it also provides access to tax professionals who can help answer unique questions you may have.

Yes, Lendio’s software is an app where professional people, not robots, handle customer service requests. The Lendio app and online platform provide small business bookkeeping software benefits like calculating taxes for you. Lendio’s software features also go beyond calculating taxes, with tools to automatically schedule and send your invoices and estimate your cash flow with precision.

Cloud-based bookkeeping services like Lendio’s software also provide the most accurate and up-to-the-minute financial data, rather than making you wait on bills or statements in the mail. 

Bookkeeping Software for Taxes

A sole proprietor will need a profit and loss statement for the required Schedule C tax form. Lendio’s automated profit and loss statements are among many good reasons to use a bookkeeping app. Their instant calculations will save you time and ensure your tax accounting is as accurate as possible.   

Lendio’s software can calculate sales taxes, state taxes, and a range of other tax summaries you’ll need when you file. It also provides the personalized, human support of real accountants who can access your necessary financials and do the work for you.

There are several benefits outside the realm of taxes where Lendio’s software can save substantial time and prevent everyday, busy-work frustrations. You’ll be able to improve invoicing with automation that sends those invoices (and gets them paid!) on time. Lendio’s software provides monthly financial reports like balance sheets and cash flow statements and features to create a work estimate automatically, get it approved by a client, and invoice for the work or product ASAP.

The complex and oft-confusing world of tax preparation can be a minefield for a small business, no matter how many onerous hours you spend on your taxes. Unlock the financial benefits of online accounting software with the affordable, custom bookkeeping plans. Take a look at Lendio’s suite of bookkeeping features, and if automated, easy tax help is right for your small business, sign up for Lendio for free.

Did you know your company’s tax preparation could feel as good as a day at the spa? With Lendio, it does.

 

The information provided in this post does not, and is not intended to, constitute tax advice; instead, all information, content, and materials available in this post are for general informational purposes only. Readers of this post should contact their tax professional to obtain advice with respect to any particular tax matter.

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Joe Kukura

Joe Kukura is a San Francisco freelance writer whose work also appears in SF Weekly and SFist. He’s written financial advice for NerdWallet, tech industry analysis for the Daily Dot, sports content for NBC Bay Area, and good, old-fashioned clickbait for Thrillist.