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How Can A Tax Advisor Help My Business?

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Business tax season is a year-round responsibility for business owners. Now is a good time to get in contact with tax advisors North Wales, to start planning your business taxes for the upcoming tax season. But, what exactly is a tax advisor? And how can they help you with your business needs?

A tax advisor is someone who has the experience and credentials to help you with taxes, specifically your business taxes.

Why Do You Need a Tax Advisor?

Having a good tax advisor can mean the following for you business:

  • Having someone who can help you if you get audited.
  • Saving money at tax time.
  • Not having to pull out the records and do it yourself (this is about as much fun as going to the dentist).

Define Your Business Needs

There are many ways in which a tax advisor can assist you and your business. Many small businesses need someone professional to take care of their taxes. At tax time, they make an appointment and brings in their income and expenses – someone takes the papers and makes sense of them. Other business owners need advice on setting up their business entity; how to keep their books, payroll taxes and potentially representing them if any tax mistakes have been made along the way.

You may want more guidance; this can be achieved by working closely with your tax advisor rather than just a once-quarterly meeting. It is better to have a trustworthy individual or firm that can give advice and take care of taxes and tax issues.

What Does a Tax Advisor Do?

A tax advisor can help you with your business taxes before, during and after-tax preparation. Here are some examples:

Before Tax Preparation: A professional tax advisor can give you advice on tax planning, but tax planning isn’t just done before the end of the year; it continues throughout. You should be in contact with your tax advisor at strategic points through the year – every quarter at a minimum. Tax advisors are up-to-date with the latest tax laws and regulations and they are best equipped to advise you on how to navigate the possible changes and to keep you tax bill as low as possible.

During Tax Preparation: Your tax advisor will most likely also be your tax preparer, doing the work of preparing your business tax return and your personal tax return. If you pay business taxes through your personal tax return, the same person should be handling both so you can coordinate tax savings.

After Tax Preparation: When your tax return has been filled, there might still be additional work to do for your tax advisor if you get audited. It makes perfect sense to have your tax preparer be your right-hand man if you get a letter saying you are being audited. This person should also have the standing to be able to represent you in the situation of an audit.

Tax Advisors Preparing Business Taxes

Anyone can in fact prepare tax returns for others, but you might want to invest in someone who has experience. For example, your brother-in-law might be able to do your business taxes using some tax preparation software, but paid tax advisors must be qualified.