Managing Tax Returns for a Small Business with $200k Revenue: DIY or Professional Assistance?
As a team member in a boutique consulting firm preparing for the 2024 tax season, we’ve realized that our annual revenue has just nudged below the $200,000 mark. With tax season fast approaching, we’re evaluating whether to enlist the services of a Certified Public Accountant (CPA) or handle the tax filing internally.
Our transaction records are diligently maintained using a reliable bookkeeping system, which gives us confidence in the accuracy of our financial data. This setup has led me to question whether hiring a professional is truly necessary. The perceived simplicity of the process and the potential to save on CPA fees make handling the taxes myself seem appealing—especially if the task requires no more than about 80 hours of work.
I’m reaching out for feedback on this self-reliant approach. My background is limited to personal tax filings, and I welcome any insights or recommendations from those who have navigated similar situations. Your expertise would be invaluable in helping us make an informed decision.
One Comment
It’s great to see your proactive approach to evaluating your tax filing options! Given your circumstances, it’s worth noting a few key considerations that might influence your decision between DIY and hiring a CPA.
Firstly, while your bookkeeping appears to be thorough, the tax code can be quite complex, especially with changes that occur annually. A CPA can offer valuable insights not only in navigating potential deductions and credits specific to your industry but also in ensuring compliance with the latest tax laws. Their expertise can help you avoid costly mistakes that might arise from misunderstandings of tax regulations, which can be particularly important as your revenue grows.
Additionally, consider the long-term implications of your decision. While the initial savings from doing it yourself might be appealing, investing in a professional can free up your time to focus on growth strategies for your business and enhance your financial health in more strategic ways.
Lastly, you might also benefit from a hybrid approach. For instance, you could prepare the necessary documentation yourself and then engage a CPA for a review or consultation. This way, you can save on costs while still ensuring that you have professional oversight.
Whichever route you choose, having a solid financial foundation and an understanding of your tax obligations is crucial for your business’s ongoing success. Good luck, and I look forward to hearing what you decide!