Tax preparation is a cornerstone of having your own business. However, not every sole proprietor understands how to go about getting a good tax professional working with them.
Here’s a few tips to help you through the process.
Keep Good Records
If you’re a sole proprietor and are wondering why you filed incorrectly last year, your own record-keeping might be to blame. When you run a business by yourself, you’re more interested in profits than book keeping.
While that’s only normal for your kind of small business, keeping records helps you to avoid any IRS trouble. Having organized and clear documents gives a tax preparation expert something to go on.
It’s a good idea to have at least some kind of understanding of your businesses finances. There’s lots of bookkeeping software that’s available to help you out too.
Check Their Credentials
Finding the right tax preparation expert isn’t just about making sure you’ve got your own house in order. You need to carefully vet each applicant you’re considering and take a good look at their credentials.
Keep in mind there are a specific set of rules for people who work for themselves. Don’t be intimidated by tax season and ask the right questions of any candidates. It’s essential to find one who has experience with sole proprietors and people in your particular industry.
For example, it’s important to keep in mind that tax law is a moving target and it’s always changing. That’s why you want to be sure you’re dealing with an accountant who keeps up on any current changes.
Sit down and take some time to ask a few questions of any CPA. Remember these professionals are quite often trained in corporate taxes so you want to be sure they understand where you’re coming from.
Do Your Own Research
There are quite a few national tax associations you can use to research. While it’s not necessary for you to become an expert, learning a little about your responsibilities as a sole proprietor helps.
You should know little bit about the different kinds of tax professionals before you start looking for the one that’s right for you. Knowing the difference between enrolled agents, CPAs and tax attorneys can make a big difference.
The very best professionals will answer any and all of your questions and guide you through the process. Finding a good Los Angeles tax preparation specialist is easier than you might think.