self employment and taxes - what do you do?

Posted on: 6 March 2015

Running a business involves managing a constant stream of responsibilities and problems. In particular, a business's finances can be one of the most complicated aspects of managing an enterprise, and it is also one of the most important. Luckily, a certified public accountant can help your business effectively manage this essential aspect.

However, if you have never considered hiring these professionals, there are a couple of important benefits that may help you decide this is a worthwhile investment:

Provide Tax Input For Major Transactions

A rapidly growing enterprise is the goal of every business owner, and while this can bring financial windfalls, it can also bring tax nightmares. This is particularly true when a business engages in large or complex transactions. Without proper guidance, it is possible to accidentally structure these deals in a way that brings severe tax penalties to your business. 

However, a certified public accountant is intimately familiar with tax codes, and this will allow them to provide your business with insights on how to arrange these transactions for a minimal tax impact.

This may seem like an unnecessary step, but it can significantly boost the profitability of your business while keeping your business in full compliance with all applicable tax codes. 

Financial Audits

In addition to helping your business avoid heavy tax burdens, these professional can also help you ensure that your records are accurately being kept. This is done through the use of a financial audit. During this audit, your business's financial records will be closely inspected to ensure accuracy and compliance with laws. At the end of this audit, you will be present with a report detailing the findings and suggesting possible steps to improve efficiency. 

Without these voluntary audits, your business could be in for trouble if it faces a formal audit from the government. If your business is found to have kept faulty records, you may face steep fines and the maximum tax burden possible under the law. This can be a crushing burden, but it can help be avoided with the services of an experienced public accountant. 

Managing the finances of a business can be a truly daunting task, but it is essential for growing and maintaining profitability for your company. Luckily, a certified public accountant has the training and expertise needed to help you business effectively manage its financial obligations. While hiring these professionals will cost money, it can yield many times the return in the form of sound financial record keeping and advice.

To learn more, contact a company like Carmines Robbins & Company PLC with any questions or concerns you hvae.