It’s tax time. Across the country people are digging through their files to find receipts and getting ready to file. In 2014, the average tax return amount for all refunds was $2,783. Whether your small business paid into the government or was one of the over 149 million that saw money come back, the importance of correctly filing cannot be underestimated. Nor is the fact that a professional and qualified tax preparer can reduce the amount if you are paying in, and increase the return should one be owed to you.
A Look at the Numbers
When comparing 2013 to 2014, the numbers show that the number of returns rose by just less than 1500. It’s an increase of 1%. E-filing returns however rose by 2.7%. And, while not a significant increase, the number of returns rose by 1.4%. This means that overall; there was not a lot of change statistically between the two years. What is important to note is that in 2013, tax professionals filed 59% more returns than individuals doing it themselves. For 2014, that percentage rose slightly to 61% more. It’s not surprising that so many people choose hiring a tax professional instead of going it alone. First, it’s much easier, takes much less time, and require fewer resources. Secondly, you can rest in knowing that your taxes were done correctly, that you will not be losing out financially, and not be unnecessarily setting yourself up for a red flag and audit.
The Importance of Correct Returns
There are many things that must be done correctly when it comes to your tax return. Are you selecting the correct filing status or business entity? Have you filled out the correct forms? Have you filled out the forms correctly? Is the information you provided the IRS accurate? Have you taken the right deductions? These and many other tiny details can make the difference between a big reduction or refund and a massive expense and huge headaches. Taxes can be confusing, and just knowing how to submit the information can be a daunting task. Furthermore, tax law changes from year to year. Are you up on the changes? Do you understand differences in the process and their ramifications for your business? Chances are you don’t.
Audits are another possible consequence of missing something. Just the word itself sounds ominous, and the process is perhaps the most dreaded event in the whole wide world of taxes. There are random audits that occur, however the large majority of audits are the result of errors or omissions in your return. Fortunately, audits can be avoided and knowing the main things that trigger them can be a huge help. But again, most people are not aware of them.
Do Yourself a Favor – Hire Someone!
From handling all the paperwork correctly to checking the right boxes, a tax and financial professional can ensure that you receive what’s coming to you, and avoid that dreaded audit. The professionals at Landwehr Financial Services can be a great help in navigating the tax returns of small businesses. Our holistic approach ensures that we will take the time needed to truly understand your situation and make your accounting concerns disappear. Contact us today to learn more about our services and experience first-hand the level of care we give to all our clients in the St. Cloud MN area. We are happy to discuss your tax needs, as well as any other accounting services you require.