The Ultimate Guide to Accounting and Tax Services for a Small Business
Taxes and Accounting are two things that can make your head spin if you don’t know what they are and how to do them. As a small business, you want to focus on the business aspect and not get bored with all the numbers and math. We know how hard it is.
So, to make your life easier, how can you find accounting and tax services for your small business?
Well, today is your lucky day, as we present the ultimate guide.
Make sure to stick till the end, you don’t want to miss out on all the key details.
Why does your Small Business need Accounting and Tax Services?
Before we go dig deeper into accounting and taxes, we need to talk about why your small business even needs accounting and taxation services.
Imagine you are running a small business and slowly making progress. You have been cutting costs and doing everything yourself, like marketing, budgeting, advertising, customer service, and others.
You have been managing the finances by doing taxes and accounting on paper or spreadsheet until now, but as the business is growing, you don’t have any time left.
So, you want someone to guide you through the taxes and accounting details. Here’s how they can help:
- Tax return preparation, filing and amendments.
- Look for tax deductions.
- Identify eligible tax deductions and learn how to apply them.
- Help manage financial statements like checking balance sheets, and keeping track of income statements and cash flow.
- Maintaining a steady cash flow.
- Financial forecasting.
- Financial analysis and advice on how to grow assets and income.
We have a detailed guide on why your small business needs an accountant. So, make sure to check that out.
Remember: Making money is important, but managing it is super important.
Now that you understand that your small business needs accounting and taxation services, the next question becomes where and how to look for these services.
How to Find the Right Accounting and Taxation Services?
Ok, before moving forward, please do a quick search on Google and type the words “accounting and taxation services.” Hundreds and thousands of results will appear.
You’ll think how can I pick the best from these?
The answer to this question is simple; you must look for certain things to find the best accounting and tax service provider. So, let’s go through these steps.
Identify your needs
Before hiring anyone, you need to look for the structure of your small business.
In the US and Canada, if you are a small business owner, you need to file corporate tax returns or file a personal tax return in case you are running a sole proprietorship.
If you think personal taxes are hard, wait till you hear about corporate tax laws. Oh boy, they are a different ball game. That’s why identifying the structure of the business comes at the top before hiring a professional firm like Tangent Consulting.
What do you want?
Next, you need to determine what you are looking for and how often you need accounting and taxation services.
You can start by making a list of things you want in chronological order. Prioritize those services you need urgently, for instance, filing tax returns.
After that, you need to decide on whether you want a freelancer or want to work with a professional firm. You want to select those who have a breath & depth of experience on their hands, and not recent graduates.
“Duh, you are giving them sensitive info; you don’t want to ruin anything.”
You can look for CPAs (certified public accountants) when deciding on accounting and taxation services.
If you think this mumbo-jumbo is too much for you, you can rely on Tangent Consulting for all your financial needs. We make it easier for small businesses to make informed decisions, optimize financial operations, and achieve sustainable growth.
Upfront costs
Each accounting firm or an individual has a different pricing structure and may have different costs depending on the complexity of the services.
For example, if your business requires bookkeeping only, the costs will be lower. But the costs can creep higher if you want tax planning and management.
So, make sure to ask about the upfront costs.
Check the firm size
When it comes to taxation and accounting services, firm size matters. Larger firms have higher resources at their disposal and can quickly solve your problem. However, they come with larger costs too.
On the other hand, small firms don’t provide all the services but are less expensive.
Working with a experienced firm can benefit your small business because nothing is more satisfying than hearing “Oh yeah, we deal with it” when selecting taxation and accounting services.
What to avoid when selecting accounting and taxation providers?
Like a toxic relationship, there are potential red flags you need to watch out for when selecting the right accounting and taxation services for your small business.
One-size-fit-all
If an accountant is saying they can do anything you want and they are the best in town. They can do your taxes, manage your finances, and advise on how you can grow your business. Then, you need to do a background check.
The problem is most of these firms or freelancers often are best for a niche or task. They may be suitable for a specific service but not all of them.
That’s why you need to work with an experienced firm. Not only will it save you time and money, but it can also be a hassle-free process.
Low fees
Some of you might be asking, “Wait, what? How is the low fee a red flag?”
Well, it might be tempting to look for cost-friendly alternatives, but costless service won’t get any traction from the firm.
Put on your small-business owner hat, and think if you are selling a product, which has a low price and low profit, would you promote it heavily?
Probably not!
Also, at first the low fee can be used to lure you, and then you can expect a hidden fee, which no one talked about and was in the terms and conditions.
“Oh my! What am I going to do now?”
Nothing to worry about
When a firm tells you that you don’t have to keep receipts, or don’t have to worry about CRA or IRS auditing, then you should run far away from them.
Business accounting and taxes are an important part of a small business, and the service provider must always explain all the practical details of taxes and accounting.
So, now you know how to find the best accounting and taxation services for your small business, you can do a quick Google search again and type “accounting and taxation services near me.”
It’ll bring all the results of the firm that is near your location, whether it’s a virtual firm like Tangent or an in-house firm.
You can also look for online directories in Canada from CPA Ontario and in the US CPA Directory to look for accounting firms.
Final Thoughts
If your small business needs accounting and taxation services, hiring an experienced firm will help you save time and money in the long run.
Also, when you are just starting out, you can do basic accounting with spreadsheets or accounting software. But once the business expands you would need help with financial management to take advantage of a professional’s expertise.
And if you are a CPA genie (like Tangent) and know everything about tax laws, then you don’t require professional services.
Have you tried looking for accounting and taxation services lately? If you haven’t or are looking for your business, Tangent Consulting has you covered. We provide extensive accounting and taxation services that get the job done without a hiccup.
Need help with deciding which services may benefit you? Talk to one of our experts and let the financial management for your small business begin.
FAQs
What is meant by accounting and taxation?
In simple terms, accounting involves keeping track of all business transactions. It involves recording, classifying, summarizing, and interpreting these transactions.
On the other hand, taxation involves paying a certain amount to the Government as a business or an individual. There are different types of taxes like income tax, corporate tax, property tax, capital gains tax, and others.
What is accounting for taxes?
Tax accounting focuses on revenue, deductions, and any credit to determine business taxable income.
What’s the relationship between accounting and tax?
Although both are separate terms, taxes involve accounting to interpret the financial data and use it to make tax calculations.
