Question by Karl B: Should I do my own small business taxes?
I have a VA S-corp but it operates in CA. I am the sole employee but I’m befuddled by best methods to doing my own taxes. I don’t want to pay an accountant thousands of dollars to do a job I could do myself, but I feel like I could waste a ton of time trying to find software that won’t work for my 2-state working scenario. Also I’m interested to hear what a pro could do for me to save or make money come tax time. Does anyone have any good instructions?
Best answer:
Answer by Michelle
Find a small tax perparer/accountant that charges by the form or type of business. My father-in-law and I do taxes. He has more experience so he charges more but a Corporation return is $ 750. If you are paying thousand’s, you are paying too much but you would be better off having a professional do it. Get one that also offers free advice throughout the year for all clients (no CPA then). I do that as a courtesy to all clients.
Know better? Leave your own answer in the comments!
Your corp tax return must be done first before you can do your personal return. Personally, I would use a CPA for that. Go to the CPA with accurate records and he can probably do it quickly and not charge that much. Or let him do all your returns this year and you can see what he/she put on what lines of tax return and then you can do it yourself next year. Keep in mind, a CPAs fees are a business expense.
Go to a smaller accounting firm…they usually charge less, or try contacting an accounting professor at your local university to see if they might know a cheap place that can do that for you.
The advice that you fins a tax professional (A CPA or an Enrolled Agent) is a good one. There are also some unlicensed tax professionals (many with bookkeeping services) who may be able to help you, but be very careful when choosing one.
Any one of these professionals should be able to SAVE you as much on your taxes as what they will charge you in fees — a good business choice! Besides, the peace of mind in knowing that the returns are prepared correctly and to your best advantage is likely worth it to you.
Most small business people are very good at whatever they do (carpentry, computer programming, whatever), but not necessarily good at keeping books and filing tax returns. Do one more job doing what you are good at to pay the accountant for what they are good at. You will be the winner in the end, and may get some good business advice in the mix.