Should I Hire a Tax Specialist?

Small business owners are notorious bootstrappers, driven to succeed by their own volition and generally super vigilant when it comes to their expenses. If they can do something themselves to save money, they probably will. While at times this can be advantageous, in many instances it’s actually counterproductive. Sometimes, it’s better to part with some funds so you can save time and ensure the task is done efficiently and correctly. 

This is certainly the case with taxes. In an effort to save money, self-employed individuals are often tempted to do their business taxes on their own. Nowadays, after all, online tax platforms and programs like TurboTax make it possible to do your own taxes for an affordable price. 

And, truth be told, it can be relatively simple for individuals who aren’t business owners, consultants, contract workers, or freelancers to manage their taxes alone. If you’re not doing anything other than working a regular job, you’ll get your W-2, have tax software like TurboTax walk you through all the steps to file your tax return, and then move on. 

But if you are self-employed, you really should have a tax professional handle your taxes for you. Why? Because you don’t know what you don’t know about all the tax rules that exist (which are forever evolving and changing). Unlike a tax specialist who lives and breathes all these nitty-gritty details, you’re focused instead on running your business, managing your workload and potentially employees, and turning a profit. Let the experts do what they do best while you spend your time and energy elsewhere.

Beyond that, and arguably more importantly, if something happens (like, say, you get a tax letter or notice from a tax agency – whether federal or state), now you’ll have someone on your side who knows what to do and who can help you respond quickly and properly. This added reassurance and support can be a huge weight off your shoulders. Plus, if they filed your taxes for you in the first place, they should feel responsible to work with you to correct any mistakes made, or assist in defending any legitimate positions taken on your tax return that you would have consented to when signing.

A Final Word from Tuesday P. Brooks, Owner of AJOY

When you’re self-employed, everything falls on you unless you build a team around you comprised of folks who can offer support and specialized knowledge. No one wants to be 100% on their own, especially when it comes to the complexity that is taxes. It’s probably just not your area of expertise (it’s not for most people!) but one mistake can really cost you. So, it’s just safer, easier, and ultimately more cost-effective to hire a tax professional who can guide you and take away any tax-related anxiety or worry.