15760 Ventura Blvd, Suite 610 Encino, CA 91436
15760 Ventura Blvd, Suite 610 Encino, CA 91436
Personal, Affordable Payroll Services, Bookkeeping, and Tax Processing for Small Business throughout Los Angeles County.

Let Your Tax Accountant Keep You on the Right Side of the IRS

Most business owners have experience with tax preparation from their personal returns. They may remember a time when they did not make much money, did not own many assets, and filed very simple returns. As they began to make more money and make tax-significant purchases like houses and cars, their tax returns became much more complex. Anyone that has seen even the simplest business returns knows that they are even more complex than personal returns. The fact is that taxes are a key contributor to business cash flow although they rarely fall under the purview of the business core competency. For this reason, many successful firms take advantage of a tax accountant in Los Angeles.

Money Interests the IRS

Although the IRS is charged with enforcing the tax rules on all citizens, its limited resources, particularly those applied to audits, are focused on individuals or businesses that can potentially contribute more tax. This not only includes wealthier concerns but those businesses that deal in cash, where reported transactions can be misreported. Business interests comprise a serious portion of the overall tax base, and so are of great interest to the IRS.

A Tax Accountant Knows the Latest Rules

The first general goal of tax planning is to minimize the chances of an audit. The second is to make tax-smart decisions. An example may be whether to lease or buy capital equipment. While the straight business analysis may indicate a capital purchase, the tax factors may swing the decision to a lease.

The tax rules change each year and a tax accountant must keep up to be effective. This means that a full-time tax accountant will likely have superior experience. If a small company cannot afford to keep an accountant busy, then contracting a professional tax accountant in Los Angeles makes sense. In this way, businesses pool their needs with similar business to reduce their portion of the cost.

The IRS Respects a Third-Party Accountant

The bottom line is that the IRS respects an independent account more than an in-house employee. This factor greatly minimizes the chances of an audit. For these reasons, businesses should consider a tax accountant in Los Angeles to minimize their tax burden.