You may have a tax accountant for years preparing your tax return and an accountant taking care of your books. Or it may be you or your business partner doing the books. How much does it cost you to have such business setup? Is there a more cost effective solution?
Often enough you are facing an expense of a few thousand dollars to take care of your tax filings. Our client, a small non-profit school, was asked to pay about $3,000 for a simple 990 return filing by an independent preparer, when the school did not even recognize any income by the end of the fiscal year.
Why so much? How to reduce such expense but still secure a CPA’s full attention to your taxes?
Based on experience I can say this rule of thumb: if you have the same person taking care of your books and your taxes, it should cost less. If it is a traditional consulting firm, you may have someone caring for your books, but when it comes to your taxes, your files go to a tax specialist who do not know your business. This person will need more time to go thru records and will need to ask more question, go back to different schedules before even starting the work. More time spent means higher cost to do the work. Again: same firm, different persons. And tax preparation results in the same high charges if you are spending valuable time caring for your own books as well – not to mention the cost of additional lost billable time when you try to do your own taxes yourself.
So what is the most cost effective way to go?
First, do the math and have a virtual accountant care for your business administrative matters. So you can charge your clients billable time and make money. For a fraction of your one-day earning you can have a CPA keeping your books straight, and if you need to, you have access to HR, contract, grant, web and
WishTeam professionals as well.
When it comes to taxes, since you have a qualified CPA caring for your books, the same CPA could do your taxes much quicker, without bothering you with questions someone working with you during the year would know anyways. Again: same firm, same person – it makes a difference!
Using virtual corporate services are the most flexible and comprehensive business solution you can have for the least of your money (Accounting and Tax).
Such corporate services can take care of your accounting and tax needs, but if needed, can assist you with full HR assistance, benefit search, web design services. Moreover, your out-of-ordinary needs can also be cared for by the WishTeam (WishTeam).
My name is Sylvia Pacher, managing director for the Virtual Corporate Services team (www.myvirtualcorporate.com), and I invite you to discover what a virtual corporate service group can take off of your shoulder to make you more billable, profitable, and probably happier because you can focus on what you do best. Please let me know if you have questions – I am always here to assist you with making your business grow bigger, stronger, more profitable and competitive. Please email me personally: spacher@myvirtualcorporate.com
Often enough you are facing an expense of a few thousand dollars to take care of your tax filings. Our client, a small non-profit school, was asked to pay about $3,000 for a simple 990 return filing by an independent preparer, when the school did not even recognize any income by the end of the fiscal year.
Why so much? How to reduce such expense but still secure a CPA’s full attention to your taxes?
Based on experience I can say this rule of thumb: if you have the same person taking care of your books and your taxes, it should cost less. If it is a traditional consulting firm, you may have someone caring for your books, but when it comes to your taxes, your files go to a tax specialist who do not know your business. This person will need more time to go thru records and will need to ask more question, go back to different schedules before even starting the work. More time spent means higher cost to do the work. Again: same firm, different persons. And tax preparation results in the same high charges if you are spending valuable time caring for your own books as well – not to mention the cost of additional lost billable time when you try to do your own taxes yourself.
So what is the most cost effective way to go?
First, do the math and have a virtual accountant care for your business administrative matters. So you can charge your clients billable time and make money. For a fraction of your one-day earning you can have a CPA keeping your books straight, and if you need to, you have access to HR, contract, grant, web and
WishTeam professionals as well.
When it comes to taxes, since you have a qualified CPA caring for your books, the same CPA could do your taxes much quicker, without bothering you with questions someone working with you during the year would know anyways. Again: same firm, same person – it makes a difference!
Using virtual corporate services are the most flexible and comprehensive business solution you can have for the least of your money (Accounting and Tax).
Such corporate services can take care of your accounting and tax needs, but if needed, can assist you with full HR assistance, benefit search, web design services. Moreover, your out-of-ordinary needs can also be cared for by the WishTeam (WishTeam).
My name is Sylvia Pacher, managing director for the Virtual Corporate Services team (www.myvirtualcorporate.com), and I invite you to discover what a virtual corporate service group can take off of your shoulder to make you more billable, profitable, and probably happier because you can focus on what you do best. Please let me know if you have questions – I am always here to assist you with making your business grow bigger, stronger, more profitable and competitive. Please email me personally: spacher@myvirtualcorporate.com
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