4 Reasons Not to DIY Your Tax Return For Your Small Business
As a small business owner, you may be used to taking the DIY approach. After all, you're most likely a marketer, financial director, HR manager and payroll administrator, to name a few of your many responsibilities. However, although your business may be small, one area calls for professional help - filing your tax return. So let's look at four main reasons you shouldn't do your taxes yourself this season.
1. You’re Not a Numbers Person
We'd all like to believe that we're good at absolutely everything, but the truth is that not everyone is good with numbers. If you don't have an affinity for mathematics, then doing your taxes yourself is probably not the best idea.
Even if you're competent enough at everyday calculations, taxes are a different ball game. Calculating your taxes is a very complex process; there's a reason that chartered accountants have to spend so many years in training.
A simple mistake on your tax return can cause you to pay the wrong amount of tax and even result in harsh penalties that can seriously threaten your small business. It isn't worth the risk.
2. It’s a Waste of Your Time
Taxes are notoriously time-consuming, and as a busy business owner, your time is a precious resource you can ill afford to waste. After all, the time you spend doing your taxes is time you can't spend growing your business. Therefore, it's essential to sit down and think about how much your time is worth before you squander it all to figure out your taxes. Think of time the same way you feel about money, and learn to invest it wisely.
3. Tax Laws Change Constantly
Tax laws change constantly, and staying on top of the latest rules and regulations can be challenging, especially when you already have a business. When tax season rolls around, the chances are you will only know about some of the latest changes, which could lead to you making mistakes on your tax return or missing out on new opportunities to save money.
It's an accountant's job to keep up to date on any changes and then takes advantage of these opportunities to save money so that you pocket as much of your income as possible. Remember that a quality accountant will always keep you more than their fees.
4. The Internet is Full of Misinformation
In this day and age, the DIY approach to any task usually involves several Google searches. The problem is that although the internet is an excellent resource, it contains incorrect or outdated information. For example, as discussed, tax laws and deductions change all the time, so the article you're reading may need to be revised. Furthermore, tax rules vary hugely from country to country, so you might make a mistake because you read advice that only applies to your business.
Sifting through all this information and checking for veracity is a hugely time-consuming task, so you're far better off working with a tax professional with relevant experience within your specific industry. That way, you can have your questions immediately answered by someone who knows what they're talking about and won't have to waste time falling down Google rabbit holes.
The needs of every business are different, but if the above issues resonate with you, you should consider hiring an accountant when tax season rolls around. A great accountant is an investment in the financial health of your business and will undoubtedly save you a significant amount of time, money and stress in the long run.
If you're a UK small business owner and would like help with your tax return then you can find out more here >> Self-Employed