In tax accounting, the primary focus is on taxes, rather than the overall financial statements of companies or individuals that we usually encounter in accounting. The Internal Revenue Code governs over tax accounting and imposes the rules for the filing of tax returns that every organization or individual must follow. Tax accountants in Salt Lake City study these rules and regulations and are familiar with key business concepts that will aid them in preparation of all sorts of tax returns for businesses or individuals. Tax accountants will also ensure their clients are aware of tax laws and any changes that may occur that could affect their business.
Why Do You Need to Hire a Tax Accountant?
For most that have had an uncomplicated and steady tax situation without any changes in the past years, there is generally no need to hire a tax accountant – unless you earn more than $200,000 a year. The IRS is more likely to audit individuals and companies with higher incomes. You would also benefit from hiring a tax accountant if you are self-employed or if you have properties for rent.
Benefits of Hiring Tax Accountants
Many would argue that using tax software would be cheaper than and just as effective as hiring a tax accountant, but using these programs also requires a particular skill set. Tax accountants are well-versed in the latest versions of the software, and with their expertise, you can rest assured that there is a lower risk of errors in computations.
Tax accountants can also teach you of the intricacies of fiscal policies and IRS rules, keeping you from any potential problems.
Whether you hire a tax accountant or do your own taxes with software is all up to you. Bear in mind that having someone on board with knowledge of your company and the IRS rules can make the task much easier.