financial bookkeeping tips for contractors

Tempted To Do Your Own Taxes? Why It May Not Be A Good Idea

It can be tempting to do your own taxes when you hear about free online tax services or software you can purchase to do it yourself. Of course, it will save you money in tax preparation fees, but free services are not always free if you end up needing additional forms to complete your tax return. Hiring a tax preparation service to prepare your tax return will give you peace of mind and save you a lot of hassle, especially if you should get audited. 

Tax codes are complicated

Unless you have a lot of time to study tax codes and review all of the new updates added each year, trying to do your own taxes can leave you feeling stressed and overwhelmed. When a tax preparer does your taxes, they are aware of any new changes that were made and can use these new changes to your advantage. This is a huge time saver versus trying to figure it out on your own or trying to look up answers online. 

Find hidden tax breaks

Sometimes just finding one small tax break can make a big difference in the amount of money you have to pay in or get back on your tax return. Your tax professional knows which tax breaks to look for to save you money. When you do your own taxes, you may overlook these important breaks and miss out on money that is yours to keep.

Avoid audit headaches

Every time you file a tax return you have a chance of being audited. Though not everyone will get audited, tax return errors can lead to a risk of an audit. When you do your own taxes, it can be easy to make subtle mistakes, and facing an audit alone can create a lot of anxiety.

When a tax service prepares your tax returns, they stand behind the accuracy of the returns. In the event of an audit, they will be able to address and resolve any issues that need to be fixed. You will not be left on your own to deal with a stressful audit.

When you allow a professional tax service to file your tax returns, there are many benefits that may offset the cost. For instance, you may end up paying less if you owe taxes or getting a bigger refund. Tax professionals are aware of any changes in tax laws and will file your taxes accurately, which will save you time and stress.

About Me

financial bookkeeping tips for contractors

As a renovation contractor, I have a lot of things to worry about each day. I have to think about my customers, my business, the insurance I need and even the employees that I have working for me. All of these things keep me busy enough without having to worry about keeping up with my financial bookkeeping each day. How do you keep up with the financial bookkeeping so that you don't make any errors that could cost you a whole lot of money? I have worked with my accountant to develop a process that has helped me and I have shared the tips he has taught me right here on my blog to help you.

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