Managing your personal finances and tax returns may differ from your business’s needs. Bookkeeping and tax benefits require specialized attention.
We’ve already discussed why you should have professional accounting services for your government contracting business; now, let’s talk about why you should have the same professional handling both your books and your business taxes.
Improved Data Security
Transferring data to your accountant poses risks. Email, fax, or mail increase theft chances. Minimize transfers for enhanced security.
Multiple accountants mean multiple data transfers, increasing theft risks. Consolidate with one accountant for fewer transfers and enhanced security.
At Peter Witts CPA, we utilize secure data sharing and encryption to help minimize any risk to your information, and can work with you to maintain your business’s books as well as prepare your tax returns each year.
Consistency and Accuracy
Inaccurate financial records, especially for government contractors, can lead to lost contracts. Ensure compliance to avoid detrimental consequences.
Multiple communication channels with different accountants increase error risks. For instance, missed expenses in books not shared with your tax preparer.
When your tax accountant sends you the return for your review, you might notice the discrepancies between the return and your books. Then again, you might not. Either way, these differences between your books and your taxes can have consequences for your business.
Saving Your Business Money
What are those consequences of inconsistencies? Generally speaking, they’re going to cost your business money. Let’s say that you do happen to notice the missing expenses on your return. You’ll send the return back to your accountant with a list of the updated expenses, and they’ll redo your taxes—but you’ll have to pay for the extra time they spend on it.
If you don’t notice those discrepancies, you’ll approve your inaccurate return and submit it to the IRS. This means you’re missing you’ll be missing out on deductions and paying more in taxes—again, taking money out of your own pockets.
When you have the same accountant for both your taxes and your bookkeeping, you only have one person handling all of that financial information. We’ll be able to prepare your return more quickly and easily based off of the books we’re already keeping for you. You don’t have to worry about ensuring multiple accountants have matching financial data, and your taxes get done faster, because we don’t have to request the books from your business’s bookkeeper.
Less Work for You
As a business owner, you know that duplicate work saps productivity. Typically, this concern is focused on ensuring your employees aren’t performing duplicate tasks; but it’s just as important (if not more so) to ensure that you aren’t doing the same tasks again and again, wasting your valuable time. When you have separate accountants, you’re creating unnecessary duplicate work for yourself.
With two accountants, you’ll find yourself sending many of the same financial documents over to each of them, and even sometimes playing the middleman to pass information between them. You’ll feel like you’re having the same conversations over and over again, because you’ll have to talk about many of the same things with both of them. By having a single accountant, you eliminate that duplicate work and save yourself a lot of time and effort.
At Peter Witts CPA, we’re equipped to handle your business’s bookkeeping needs, as well as being qualified to prepare and file your tax returns—both personal and business—every year. Contact us today to learn how using our services for all of your business’s accounting needs can benefit you.