Many people consider accounting to be simply mathematical in nature, black and white, a profit and loss conversation. And they consider accountants to be in the same genre, dull, cold, dull, uninteresting. However, accounting is much more about analytics, about predicting future outcomes for your business. It looks at all the financial pieces of a business and works with income, expenses, commissions, and liabilities to create a financial picture. An accountant uses this data to create strategies to improve profitability, manage expenses and estimate cash flow. And if you find the right accountant, you will find a partner for your business who can help you predict outcomes for your company’s fiscal health. You might even find someone with a sense of humor AND who can demystify taxes, payroll, and equipment amortization. Who wouldn’t want that in a business partner? In any partner?
Selecting an accountant is like selecting a partner for life. Fine someone who is patient, knowledgeable, dependable, and who is a good listener.
As a small business owner it is important to understand the in’s and out’s of payroll taxes. Unfortunately, since small businesses seem to be a significant source of uncollected taxes, the IRS targets small business owners for payroll tax compliance.
There are simple steps you can take as a business owner to avoid IRS payroll tax audits. A CPA can help train your payroll staff to avoid common pitfalls like:
• not filing payroll information in a timely manner
• borrowing against withheld payroll taxes
• failure to pay
Not only can the business be at risk but the IRS can also come after business owners for payroll tax evasion and the penalties can be very stiff. Penalties can increase tax liability by over 33% plus interest along with seizing company assets.
It’s easy to protect the financial health of your company with the right expert CPA advice and staff training.
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