The joke around the internet is that… “Anybody who is folding their arms are doing taxes.” 🤣🙄
Okay, hear me out, and I think I can speak on this because of my background in Accounting. A Tax Preparer is someone who learns how to fill out your tax form. They are not taught how to strategize with you, whether it’s for a business or as an individual. They can’t walk you through tax strategies efficiently. That’s why I can’t stress this enough. People really need the following: As a business owners need a Bookkeeper and Accountant and as an individuals need an Accountant and Tax Advisor.
As a business owner, your Bookkeeper is the one keeping up with your books. It’s impossible to run a business without a Bookkeeper and not be on accounting software. I wish more people understood that. The Bookkeeper ensures everything is good for your Tax Preparer to put on your tax return. This step can’t be skipped. Additionally, an Accountant is crucial for a business wanting to know more strategies on how to manage, grow, or change things to make a profit. It goes hand-in-hand.
As an individual, I would just say, have an Accountant. It’s best, although there aren’t many tax strategies for individuals. There are many things that Accountants can help with, such as tax withholdings, credit deductions, or expenses related to a side hustle.
That’s why I encourage people to talk to an Accountant. Ask questions, and you might be surprised at what you can learn. Accountants know more than what tends to be written or what the internet may say. It’s definitely something to consider.
Newsflash, guys! Both the individual and the business owner, having either a Bookkeeper or an Accountant, has many more benefits. You can talk to these professionals all year round, ask questions, and plan next steps. Tax Preparers, forget about it. They fill out your forms, charge you, and you never see or hear from them again. Very few Tax Preparers actually know their clients on a personal level.
That’s not the case with Accountants, Tax Advisors or Bookkeepers. Even though those yearly, monthly, or quarterly expenses to your professional might seem daunting. In all actuality… it’s actually going to save you more than. The truth is that having a Tax Preparer once a year can result in overcharges due to the extensive work required for a single tax return. I guarantee hiring a professional you’ll get clarifications that you didn’t know you needed. As well as establishing a consistent relationship with someone who understands your financial situation. All while saving you from additional charges, by being able to prepare your tax return without charging extra when that time comes.
Another bombshell for you guys: you might get lucky and find an accountant that is a triple threat. A triple threat can do Bookkeeping, Accounting, Tax Planning.
Reflect on who currently handles your finances, taxes, and books. Inquire about their credentials and expertise. Recognize that Accounting is not a skill easily acquired online and appreciate the dedication Accountants put into staying compliant and continuously learning to keep their clients compliant.
Even if you don’t get lucky and find a triple threat, at least get a Bookkeeper who can keep your business books clean and compliant. When you want more strategies or need to talk more about your business, you can inquire an Accountant. From there, is when it’s time to go to a Tax Preparer.
Think about what you’re paying for these tax preparations and what you’re getting in return. Are you able to talk to the preparer, ask questions, or get strategies? If the answer is no and they are just filing your tax returns, then you really need to reconsider that this year.
So, I hope this blog sheds light and opens your eyes on how tax season can be easier if you ask the right questions. With it being the top of the year, let’s prioritize financial education and understanding. Consider reaching out for a consultation to explore how a qualified professional can make a difference in your financial stability. Don’t be blinded by the allure of tax preparation; instead, invest in a holistic approach to secure your financial well-being throughout the year. And hey, I’m someone you can ask questions to—I do Bookkeeping, Accounting, and Tax Planning. By creating customized tax strategies for business owners and individuals. If that’s something you’re looking for this year, let’s talk.
Until the next blog, guys, happy tax season! 🤓🧾