Preparation of tax returns for a business is a common issue of debate amongst small business owners. Many small businesses assume they are saving money by preparing tax returns on their own. However, there is a difference between price and cost.
Price is what you pay upfront. Cost is what you pay over the entire time period. For example, suppose you buy a computer for your business. One has a price of $300 and fails after 9 months. The other choice has a price of $600 and lasts for 4 years.
Smart business owners make the distinction between price and cost. In the example above, the cheaper computer cost $33 dollars a month. The computer with the higher price tag costs $12.50 a month. Buying the computer with the higher price tag costs less.
Preparation of tax returns is no different. Many business owners end up costing themselves more money because they see the price of filing their own taxes as free. Later, the cost catches up to them in the form of fines, penalties, and hiring an accountant or attorney to deal with the problems.
While the preparation of tax returns is something that a small business owner can do on their own, the choice should be made intelligently. Take into account the overall cost to your business first. That is why it can pay to make sure your tax return preparation is done right.
There is also the consideration of the value you place on your time. Small business owners can wear many hats. Come tax time, the operation of the business may suffer because it takes away from focusing on your daily business activities. If the money your business loses to the activity of preparing tax returns is more than the cost of paying your accountant, then it simply makes sense to have it done for you.
If you would like to discover more about how Tim Nash & Associates can help with the preparation of tax returns for your business, give us a call today. You will be able to plan ahead and stay on top of this very important task. Do not wait until the last minute when getting assistance can be difficult. The sooner you discuss preparation of tax returns with your accountant, the better.