Taxes and Small Business
We serve clients in Fate, Rockwall, Royce City, Heath and McClendon-Chisholm. We are conveniently located in Rockwall county.
Initial consultations are free, and can be done remotely or in-person.
With Intuit’s products, QuickBooks and TurboTax, as well as products from other software companies, small companies have more opportunities to keep their costs as low as possible. So, when should an individual or business transition from doing their own books and taxes to seeking assistance from a Certified Public Accountant?
For individuals, it is better to see a CPA when planning or accounting for life changing events such as beginning a business; engaging or planning to engage in out-of-the ordinary stock, bond, or real estate transactions; buying your first rental property; preparing to pass on or receive an inheritance, including IRAs and other retirement savings; and any time one does not fully understand how a transaction – an expense or receipt of assets – may affect his or her taxes or finances.
For small companies, individuals should get the advice of their CPA in the year before opening to discuss:
- What type of company to open – a sole proprietorship, a partnership, a limited liability company, an S Corporation, or a C Corporation;
- Creating or reviewing the business plan;
- Setting up the books;
- Estimated quarterly income tax payments.
In the first quarter of the first year, it would be a good idea to:
- Have a CPA review how the company’s receipts and expenses are being recorded; and,
- Make sure employee transactions are properly accounted for.
In essence, we generally only want to spend money in order to save more money. These are the times a CPA can save you money.
Whether or not an individual or small company want to do their own taxes depends upon the complexity of the transactions, the individual or business owner’s expertise, and the amount of time one has to spend on taxes and bookkeeping. Using online software is great, but the individual or small company receives no advice about how to save taxes next year or about how to be more profitable. CPAs provide more than tax compliance by preparing returns; they also provide small business and tax planning expertise.
The next question is whether one should go to a big, medium or small firm. Big firms have the most resources, but a small company usually does not need all those resources, and big firms charge a lot. Medium-sized firms have usually been in business for 25 years or more and have grown up with their clientele. They are not as large as big firms, yet they can be very busy and of course will pay the most of their limited attention to their long-term clients. Steven Martin CPA is a new firm. When you call, more than likely you will reach either Steven or Josh Martin, partners. Having a CPA one can call anytime is worth a lot!
Steven Martin, CPA is a member of the American Institute of Certified Public Accountants. He also holds a certification in U.S. International Tax: Inbound and Outbound Transactions. Earners of the U.S. International Tax: Inbound and Outbound Transactions badge have demonstrated knowledge of inbound and outbound taxation, including the major areas of US international tax reform such as DRD, GILTI, BEAT, FDII, and Section 965.