Should I Hire a Professional for Small Business Tax Filing or Handle It Myself

Filing taxes is one of the most critical tasks for any small business owner. The question many face is whether to tackle this task themselves or hire a professional. Handling taxes on your own might seem like a way to save money, but the complexity of tax laws and the risk of costly mistakes often make hiring a professional the smarter choice. This post explores the pros and cons of both options and explains why working with tax experts like BAS can bring peace of mind and financial benefits.

Small business tax filing setup with documents and calculator

Understanding the Complexity of Small Business Taxes

Small business taxes are not just about filling out a form and submitting it. They involve understanding various tax codes, deductions, credits, and deadlines that can change frequently. For example:

• Different business structures (sole proprietorship, LLC, corporation) have unique tax requirements.

• You must track income, expenses, payroll taxes, and sometimes sales tax.

• Tax laws change regularly, and missing updates can lead to errors.

• Filing late or incorrectly can result in penalties and interest.

  
  

For a DIY business owner, keeping up with these details requires significant time and effort. Even a small mistake can trigger audits or missed savings.

Benefits of Doing Your Taxes Yourself

Some small business owners prefer to file taxes themselves, especially if their business finances are straightforward. Here are some reasons why:

• Cost Savings: Avoid paying fees for professional services.

• Control: You manage every detail and learn more about your finances.

• Convenience: You can file on your own schedule without waiting for an appointment.

  
  

If your business is very simple, with limited transactions and no employees, DIY tax software might work well. However, this approach demands a solid understanding of tax rules and careful attention to detail.

Risks and Challenges of DIY Tax Filing

While doing your own taxes can save money upfront, it carries risks:

• Errors and Omissions: Misreporting income or missing deductions can lead to audits or penalties.

• Time-Consuming: Learning tax laws and preparing returns can take hours or days.

• Missed Opportunities: Professionals know about deductions and credits you might overlook.

• Stress and Uncertainty: Tax filing can be overwhelming, especially if you face questions from tax authorities.

  
  

For example, a small business owner who missed claiming home office deductions lost hundreds of dollars in savings. Another who misclassified employees faced costly fines.

Why Hiring a Professional Like BAS Makes Sense

Tax professionals bring expertise and experience that can save you money and reduce stress. Here’s why hiring BAS or a similar service is beneficial:

• Accurate Filing: Professionals ensure your taxes are filed correctly, reducing audit risks.

• Maximized Deductions: Experts identify all eligible deductions and credits to lower your tax bill.

• Time Savings: You free up time to focus on growing your business.

• Up-to-Date Knowledge: Tax laws change often, and professionals stay current on all updates.

• Audit Support: If the IRS or tax authorities question your return, a professional can represent you.

  
  

BAS specializes in small business tax filing, offering personalized advice tailored to your business type and goals. Their services often pay for themselves through tax savings and peace of mind.

Real-Life Examples of Professional Help Benefits

Consider these examples:

• A home organizer hired BAS and discovered deductions for software subscriptions and home office expenses she hadn’t claimed before. This reduced her tax bill by over $1,200.

• A small retail store owner avoided penalties by having BAS handle payroll tax filings, which are complex and easy to get wrong.

• A startup founder saved time and stress by letting BAS manage quarterly estimated tax payments, avoiding surprises at year-end.

  
  

These cases show how professionals add value beyond just filing forms.

How to Choose the Right Tax Professional

If you decide to hire a professional, keep these tips in mind:

• Look for experience with small businesses in your industry.

• Check credentials such as CPA (Certified Public Accountant) or EA (Enrolled Agent).

• Ask about fees upfront and what services are included.

• Read reviews or ask for referrals.

• Ensure they offer personalized advice, not just form filling.

  
  

BAS meets these criteria and focuses on helping small business owners navigate tax complexities with confidence.

Work with A Professional for Your Small Business Tax Filing

Every business has a unique financial footprint. That’s why our tax solutions are never one-size-fits-all. We work closely with you to develop a personalized tax strategy that aligns with your industry, goals, and financial outlook.

My guess is that it happens to most small business owners like me. You don't have a CFO and you get to year end and you've neglected your record keeping throughout the year, so it's a scramble to get everything ready by March 15 for your corporate taxes. Plus, small business owners wear so many hats that this is often not at the top of the list to get done. You end up having to do an extension. The great thing about Business Accounting Systems is that you are completely ready at year end for tax time as they've kept you up to date each month. No stressful deadlines. I highly recommend Business Accounting Systems. - Bob Bentz

Work with Us