Business Tax Preparation: What You Can Do and How a CPA Can Help You

Business tax preparation is not a task you should ever underestimate if you live anywhere else in New Jersey. Throughout the year, you should have already made sure that all your transactions have been properly documented, and all details about your company updated. With how complicated the whole process is, it's basically smarter to hire a professional who’ll provide you with reliable accounting services from Kearny, NJ instead of winging the process without their guidance. But the question is, why?

Some of you might be dismissively waving a hand at this idea, thinking to yourself, "That's not true. I can definitely do all this by myself. That's what the Internet and all its how-to articles are for!"

But no, that mindset will be the beginning of your and your business' demise — because, without a CPA to prepare your taxes or perform other tax services in Kearny, NJ, you'll have trouble with the following points that they're meant to help you with:

  1. CPAs can inform you of what you don't know. Since they're the professionals in this field having undergone formal education, licensure exams, certification exams, and years of experience on their profession – they know the mechanisms of the field better than any other kind of person. They won’t get confused about the technical terms and procedures mentioned in all necessary forms, nor are they ever in the risk of misinterpreting details — unlike average everyday non-accounting people. So without the CPA to inform you of complicated details or inform you of updates in accounting and taxes, there’s no way for you to know what you don’t know. Plus, mistakes in your tax returns actually warrant fines and penalties. You do not want to risk that.
  2. CPAs can advise you on your future business moves and expenses. After all, every transaction or movement in business would always somehow involve money, and therefore taxes. CPAs know the consequence of almost every activity you may do with your company in relation to taxes, such as buying a business car, building an office, or selling goods. So if you don’t work with a CPA for your yearly business tax preparation, you’ll also be moving blindly for the entirety of next year as to how your business decisions could cause your business taxes to increase or decrease. In that sense, any advice a CPA can give you will be helpful not only in your business moves towards success, but also to how you’ll be able to cut expenses and save money.
  3. CPAs can represent you when dealing with legalities and the government. Whoever prepares your business tax return signs the documents so that it is clear who did it, and it’s best that a CPA does it. In case you get audited, the CPA — as the one who completely knows what was done to the tax preparations and why — can easily represent you before the IRS or Tax Court. Not everyone can do this; only CPAs enrolled agents and certain attorneys can.

Something to remember:

Even with a CPA, you as a business owner still carries the responsibility of making sure that your tax returns are accurate. There are matters that you yourself can tend to, even before hiring a CPA, in order to make sure that nothing will go wrong with your business tax preparation. The following are just a few of those steps you can take:

  1. Stay organized. Record all your activities and transactions. Have all receipts backed up both on paper and digitally.
  2. Create separate bank accounts for yourself and your business.
  3. Take note of all dates, such as that of the beginning of partnership agreements.
  4. Keep track of all details regarding payroll, assets, and liabilities.

As long as you are properly documenting all activities in your business, a CPA is sure to do a great job in doing your business tax preparations. But we at Nicholas J. Coco, CPA can go the extra mile, especially with the years of experience and knowledge already behind us. We are your best choice for any tax services in Kearny, NJ and anywhere else in New Jersey. Just like the points we have stated here about how a CPA can help with your business tax preparations, rest assured that we are fully and even more than just capable of doing so. If you have any questions, feel free to browse through the rest of our website to find out more, call us at 201-955-3100, or email us at Don’t risk getting penalties because of inaccurate tax declarations. At Nicholas J. Coco, CPA, we’ll effortlessly handle all that.

Leave a comment

Your email address will not be published. Required fields are marked *