As a business owner, you have a lot of responsibilities that can't be delegated to other people. But one task that you can reliably trust a professional with is tax preparation. Throughout this process, a business owner should ask questions that help them understand their tax obligations and better prepare for the year ahead. Below are some important questions to ask a tax preparation professional.

4 Questions to Ask a Tax Return Preparer

What changes in tax laws will affect my business?

Tax laws change every year. Your preparer can explain any changes and how they will impact your business. For instance, in 2021, many business tax changes were implemented because of COVID-19. Under the CARES Act, the allowable business interest expense deduction was expanded for some businesses from 30% to 50% of adjusted taxable income. 

Also, if your business received any money that was forgiven through the Paycheck Protection Program (PPP), the amount is not considered taxable income for 2020. Your tax return professional will make sure you understand changes such as these.

How can I lower my tax burden?

All business owners understandably want to find a way to reduce their tax burden. Your preparer will go over your records and see that all allowable deductions are being taken. They can identify strategies for maximizing your tax savings. 

Possible solutions might include setting up and funding a retirement plan for yourself or employees, taking tax credits for approved green business purchases, or writing off bad debt. 

What records do I need to keep?

Before you visit your tax preparation professional, ask them what documents they'll need. This list typically includes prior-year tax returns, financial statements, general ledgers, payroll records, and itemized deductions. Providing the preparer with the necessary documents will streamline the process and give them all the details they need to file your taxes.

When and how much do I need to pay in estimated taxes?

Many businesses need to pay estimated taxes. However, determining how much you owe can be tricky, as you'll need to predict the coming year's earnings based on those of prior years. Your preparer will calculate estimated taxes for you. These usually need to be paid quarterly, but they will almost certainly reduce your tax burden at the end of the year.

When you need tax preparation services in the Greensboro, NC, area, trust Fresh Start Tax Resolutions. With over 30 years of industry experience, they offer tax and accounting services, as well as IRS representation and tax debt relief. Protect your business and its success by letting them handle your taxes. Call (347) 210-2799 or visit them online to schedule a consultation.