Happy Monday, fabulous!
I hope you had an amazing weekend. First of all, did you catch Jennifer Lopez's dress last night? OMG. GORG. Freakin love her. In case you missed it...
Although I didn't get to attend the Oscars (hey Universe, can we make that happen next year? Kthanks.), I did go to a number of awesome events including Y Combinator's Female Founders conference. And I hosted an event for my Future of Accounting group. Don't be fooled, accountants love to learn and drink at the same time ;)
On to the topic at hand. Do you need to hire an accountant to file your taxes?
Well, the answer is yes...and no. An accountant is great because she will help you find tax deductions that you will likely miss if you did it yourself.
However, it is an expense that you may not be able to afford if you are a new business owner. Especially if you haven't done your books all year.
Also, as you know, I'm all about financial literacy. Learning the basics about tax filing is important for every business owner.
When should you definitely hire an accountant?
- If you are a LLC, S-Corp or Corporation. Otherwise, it is really up to you.
- If you do work with a professional, make sure she is a CA (Chartered Accountant), CPA (Certified Public Accountant), EA (Enrolled Agent) or a tax attorney.
- If you live within the states, an EA is preferred. Why? Because she focuses solely on taxes, with a heavy emphasis on federal taxes. It's the only license that is issued by the federal government. CPA is issued by each individual state.
If you want to tackle your annual tax filing on your own:
- Check out online tax filing programs. There are a number to choose from including Tax Act.
- Visit your local library. The public library system, in the United States, works with tax professionals during tax season to offer free tax filing services.
- Do some research. Taxmama.com has a free membership for those that want to ask specific tax questions and get an answer from tax professionals.
Share the love. Forward this to a friend who is stressing about taxes!
Have an amazing week!
Disclaimer: Please consult your tax accountant or attorney for specific accounting instructions related to your business. Danetha Doe nor her companies will not be held liable for any personal or business-related financial, or other, misfortune or hardships.