If you own a small business, you need an accountant. Small business owners tend to file their taxes with a free online tax services year after year, but a digital solution can only take you so far. A tax accountant, or should we say a real accountant is an essential part of your small business team.
But why make the switch now? COVID-19.
Various COVID relief bills were passed in 2020 and 2021, which mostly affected the small business sector. With these new bills and laws, some of the previous ones passed were then overturned, making this years 2020 business taxes a little more complex. You certainly want to talk to an accountant if your business qualified for some of the various forms of government and private support and tax benefits this year.
The various forms of government assistance and tax benefits announced in 2020 were unbelievably confusing.
Here are just a few of the government programs and policies that might affect your 2020 small business taxes:
- Paycheck Protection Program
- Economic Injury Disaster Loans and EIDL loan advances
- Employee Retention Credit
- Any support from other governments or organizations
But a good accountant is more – much more – than a tax preparer. A good accountant is your small business advisor, not just a tax advisor. He or she should be able to help you deal with all the major financial issues your small business faces and advise you on how to insure your personal financial well-being. Our accountants at Loeffler Financial Group can help guide you on how to handle the financial matters, including the accounting and money handling systems of your business. Our team also will help guide you on ways to structure investment, personal loans, and losses to get not only the best tax treatment but to better manage my cash flow.
- What kinds of taxes will I have to pay? What are my tax deadlines?
- How can I reduce my taxes?
- Which expenses are deductible, non-deductible or have to be depreciated?
- What kind of bookkeeping system should I set up?
- How can I set up systems to reduce the possibility of theft or embezzlement?
- How should I pay myself and what are the tax implications?
- Should I use the cash or accrual form of bookkeeping?
- Do I need to keep track of inventory? If so, what method do I use?
- How do I handle payroll and payroll taxes?
- Do I have to collect sales tax? When? From whom?
- What kind of retirement program can I set up and how much can I contribute each year?
- What other accounting and tax considerations are there for my type business?
A good small business accountant can save you more money in the long run, and help you lower your taxes! Although the deadline for taxes has been extended to May 17, 2021, you want to start gathering your files, and book your appointment today!