3 Ways Outsourced Bookkeeping Can Save You Money During Tax Season
Most people who own a business cringe during tax season. Although you may have submitted your quarterly taxes, filing your annual forms will sometimes result in you paying more. But did you know that outsourced bookkeeping services may be able to save you money on your taxes and provide peace of mind during this typically tumultuous time? Here are a few ways to do that.
1. Outsourced Bookkeeping Provides Clean Books
Are you one of those business owners who throws their receipts in a box or envelope and then takes this chaotic mess to your tax preparer? Do you attempt to use bookkeeping software that you need help understanding to track your business expenses that may or may not be compatible with what your tax preparer uses?
If you answered yes to either of these questions, you are probably paying your tax preparer much more than you have to. When you outsource your bookkeeping services, your bookkeeper will ensure your books are accurate, up-to-date, and understandable.
Your service will provide these clean books and any other required forms to your tax preparer when needed. Having clean, accurate books and records will reduce the time it takes your tax preparer to do your taxes. Less time involved means a smaller tax bill for you.
2. Outsourced Bookkeeping Services Can Identify Tax-Saving Deductions
An outsourced bookkeeping business can provide services to many different companies. Because of this, they become well-versed in many of the tax-saving deductions your business may be entitled to take.
Many times as a small business owner, these are deductions you may not be aware of or may not have time to research or consider. The business may save you enough to pay for its services by identifying a few of these deductions.
3. Outsourced Bookkeeping Services Prepares You For An Audit
The thought of the IRS auditing your small business is a nightmare for most small business owners. Unfortunately, it is a nightmare realized by many businesses each year.
The IRS randomly checks businesses to ensure that your reported income, expenses, and deductions are federally compliant. If the IRS finds a mistake, they can charge your business hefty penalties and interest.
Outsourced bookkeeping services will ensure your business is ready to be audited by keeping your books up to date. The company will understand exactly what information the IRS is asking for and will be able to provide it quickly. This prompt response will ensure a clean audit and give you peace of mind.
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