When it comes to taxes, the more money you make, the more you’re required to pay in taxes. If you work in the accounting field, there are some tax tips and techniques that you can use to maximize your deductions and reduce your tax bill year after year. These tips, though simple enough for anyone to use, can help accountants save thousands of dollars every year on their own tax bills and can save their clients even more through business deductions.
1. We can reduce your workload
When it comes to taxes, there’s a lot to consider. Accountants have an understanding of tax laws and regulations that enables them to cut through red tape and find loopholes, which in turn helps businesses save money. Working with a tax accountant can reduce your workload without sacrificing accuracy or attention to detail.
2. Stay on top of changes in the industry
As a tax accountant, you need to keep your finger on the pulse of new tax laws. It’s important to be in-the-know about new tax rates, deductions and exemptions that are going into effect. With so many things changing from year to year, it’s easy to get lost in all of it. The best way to avoid making mistakes is by knowing what’s happening and staying up-to-date on news impacting your clients. That way, you can do everything possible for them.
3. We have expert knowledge
The Internal Revenue Code is both incredibly complex and contains a lot of provisions that could get you in trouble if you’re not familiar with them. To save your clients money, you need to know exactly how they’ll be affected by tax law changes. You also need to understand which deductions and credits they qualify for, what kind of assets they should be holding on their tax returns, how likely it is that they’ll be audited and more. Knowledge makes us credible and empowers us to recommend smart moves to our clients. It helps us steer them toward financial freedom!
4. Tax Saving Tips: Prepare early and often
As an accountant, it’s your job to know how taxes work and how to save on them. If you’re not taking advantage of all possible deductions, there are probably lots of other ways to save money that you’re missing out on too. Before taxes come due in April, spend some time looking over tax laws and planning ahead: an hour or two each month can add up to thousands of dollars in savings.
5. We are available to you 24/7
Unlike many other accounting firms, we are available to you 24/7. This is one of our unique selling points (USPs). When it comes to your finances, it’s a good idea to have somebody on hand who can help at any time. You might have questions about how much tax you owe, how to reduce that amount or even just make sure you are aware of everything that you need to be aware of. Our firm is always open and will ensure your finances are taken care of no matter what time of day it is. This can be particularly useful if you find yourself with an unexpected expense in times like these when getting money from a bank loan can be hard work; being able to call upon our firm whenever you want is a major benefit.
6. We can be trusted with confidential information
A client’s tax return is one of their most prized possessions, and they entrust us with that information to handle it professionally. We are in turn required by law to keep that information confidential. A lot of clients even like knowing that their accountant is a fiduciary and legally obligated to put their interests first. They can be sure that if we recommend against taking on a risk or an opportunity, we aren’t just trying to make things more complicated; we aren’t thinking about our short-term bottom line. Our job is to help them reach their long-term goals as efficiently as possible—even if that means giving advice they don’t want to hear.
7. Reduce your filing time
If you’re in business, chances are you spend a lot of time filing taxes—and that amount of time can vary depending on your line of work. If you have a substantial amount of time to spare each year, consider investing in tax software. While it can cost a few hundred dollars to get started with an app like TurboTax or H&R Block, these programs can help eliminate hours worth of menial tasks.
8. Let us file late payments
If you find that you owe more than $1,000 in tax at filing time, don’t panic. The IRS offers several ways to file late payments and get a break on fees and interest. One way is through equitable relief, which is typically granted if there was significant mitigating or extenuating circumstances beyond your control. Another option is asking for a payment plan, which spreads out your payments over 120 days. And lastly, there are partial payment agreements – but only as a last resort when no other options are available. Keep in mind that you may not be able to extend your filing date – but with these tips from our tax experts, you can easily reduce penalties and interest rates on late payments.
9. Be aggressive but not unethical
Not every deduction is allowed by law. Make sure that what you’re claiming as a deduction is actually legal and you have proper documentation to back it up. If not, it could be considered tax fraud and lead to an audit (and expensive attorney fees). Also, never borrow deductions from future years – claim only what you earned in a given year and no more.