Outsourcing your tax preparation services to a CPA is one of the best ways to ensure that your business is in compliance with tax laws and that your business’s accounting needs are being met. Using a CPA for taxes helps you not just during tax season, but all year-round, as you can rely on their expertise to plan appropriately and help grow your business. Here are some of the key reasons why business owners should use CPAs for taxes.

#1. CPAs Can Save You More Money Than The Cost Of Hiring Them

Some business owners may drag their feet at the idea of hiring a CPA for taxes. However, using a CPA is like investing. You know that saying, “you have to spend money to make money”? The return you get by hiring a CPA for taxes is greater than the cost of hiring them. CPAs help you take advantage of deductions you otherwise may not know about, ensure that your finances are up-to-date, and keep you in good standing with the IRS. 

Additionally, you can use a CPA’s service all year round, not just during tax season. They can provide you with valuable advice on everything tax-related, from investments, to mergers and acquisitions, and much more. Implementing tax planning strategies year-round is an excellent way to reduce your tax liability. 

#2. CPAs Have Years Of Experience

The sheer amount of detail required for business taxes and ever shifting tax laws make the expense of hiring a pro well worth it. CPAs have to not only get their bachelors degree, but also must pass multiple exams in order to be certified and have prior accounting work experience. It’s their job to do this type of work. For optimal results, work with a CPA who has experience working with other businesses in your industry, as they will be familiar with unique tax circumstances you may face.

#3. Mitigate Misinformation Or Filing Issues

Tax laws are ever changing, there are so many different deductions and credits out there, and minimizing your tax liability while maximizing your return can be difficult without the assistance of a certified public accountant. If you can afford to hire a CPA for your business taxes, it’s likely your best option. Not only can CPAs save you money, but they ensure that your taxes are filed correctly. It’s their job to stay on top of everything tax-related. As such, using a CPA for taxes mitigates the likelihood of misinformation on your tax return or other such filing issues.

#4. Using A CPA For Taxes Saves Time And Energy

Business owners should focus on just that – running their business. Successful business owners hire others to fill in the gaps in order to maximize profits and efficiency. Doing your business taxes can take a lot of time and resources. Time is money, and yours is better spent on your business. 

Hiring a CPA, whose whole job it is to help others with their finances, saves you both time and energy. Something that could take hours of research on your end can be done very quickly on theirs. Outsourcing your taxes to a certified professional enables you to focus on doing what you do best – growing your business and, ergo, generating more revenue. 

#5. Enjoy Peace Of Mind

Utilizing CPAs for taxes grants you the peace of mind that everything was done correctly, which you wouldn’t otherwise be certain of. As CPAs are bound by codes of ethics and professional standards that require them to provide accurate, high-quality services with integrity, this means that you can rest assured that your business taxes will be done correctly, that every tax credit and deduction you are eligible for has been found, and should you be audited, your CPA can represent you.

#6. They Can Represent You During An Audit

As mentioned in the above point, CPAs can not only help you with planning for and filing your taxes, they are also qualified to represent you in the event of an audit. Should you need to have your financial statements audited in order to apply for a loan or grant or in the event that the IRS revisits your previous tax returns, you need a representative. Having a CPA in your corner makes the process smoother and increases your chances of success.

Business Tax Preparation, Planning, And Consulting In And Around Glendale, CA

Golub, Senitt, Rosenberg & Co is here to provide you with the services you need to take the stress out of tax season. Our CPAs set themselves apart with their up-front pricing, clear communication, on-time projects, and accurate, high-quality work. Our services extend beyond tax returns and can take a deep dive into your business in order to identify strategies to accomplish your financial goals.

Contact us today to schedule a consultation, and experience the difference of working with licensed professionals for your business’s accounting needs.

Tax planning is when taxpayers use knowledge of tax laws in order to pay the least amount of taxes legally allowed. Tax planning makes tax season less daunting – but knowing efficient tax planning strategies can be difficult, as everyone’s situation is different. Working with a certified public accountant allows you to formulate and implement tax planning strategies that work for you and your business so that you can minimize your tax liability and maximize your deductions. 

Before meeting with your CPA to start tax planning, you’ll want to ensure that you’re as prepared as possible so that your meeting goes smoothly. Here is a general checklist you can use when you’re ready to meet with a CPA about tax planning. If you have any questions about whether or not you have everything your CPA needs, you can give them a call.

#1. Set A Deadline

Don’t wait until Tax Day looms overhead. Give yourself plenty of time to prepare. Setting a deadline by which you want to get everything in order allows you to be able to review your strategies and check, double-check, and triple-check any iffy areas in your records.

#2. Gather Your Financial Records

If you’re on top of your records, this should be straightforward. However, if your books are in disarray, this could take more time. You’ll want income statements, balance sheets, bank statements, invoices received and paid, and other records, such as inventory records. Your CPA will provide you with an agreement to sign for their work once pricing and scope of work have been agreed upon.

#3. Compile Business Expenses

The IRS categorizes most business costs as tax write-offs. You’ll want to keep careful records of these and make sure that you’re not mixing personal and business expenses together. Using a credit card for both personal and business expenses rather than strictly for business increases your risk of a tax audit. 

#4. Summarize Estimated Tax Payments And Investment Activity

Small businesses are required to make quarterly estimated tax payments. When it comes time to file your income taxes, having a summary of the estimated payments you made and when you made them can be useful in reducing your tax liability.

You’ll also want to summarize your investment activity for tax planning purposes, as this is useful for tax deductions. Include IRA accounts in this.

#5. Note Ownership Changes

A change in ownership impacts your business’s equity. It’s important to inform your CPA if your business has undergone a change in ownership so that they can properly help you in your tax planning ventures.

#6. Meet With Your CPA

Of course, you’ll want to meet with your CPA after getting all your records in order. Your CPA has the knowledge of ever-changing tax laws and regulations in order to provide you with current, accurate information relevant to your specific situation for optimal tax planning. 

Depending on your business, there are a few different ways you can reduce your tax liability. Your CPA will advise you on the best options for you, but here are some general strategies businesses may implement.

• Business income deferral
• Business expense acceleration
• Timing the payments on bonuses 
• Inventory management strategies
• Making the most of your deductions
• Being proactive about equipment procurement and depreciation
• Leveraging tax credits
• Making charitable donations
• And more

By staying on top of how you utilize tax planning strategies and ensuring your books are accurate and up-to-date, you may be able to reduce your tax bill. 

Ready To Start Tax Planning?

Golub, Senitt, Rosenberg & Co. is here to help you grow your business. From tax planning and tax risk consultation to financial consulting, controllership services, and fractional CFO services, our CPAs are dedicated to providing you with timely, accurate work. We focus on building a partnership with our clients to help you not just now, but in the future.
Contact us today to schedule a consultation or to learn more about the accounting services we provide throughout sunny LA county.

While 2024 marks the start of a new tax year, tax season for the 2023 tax year begins January 29th. It’s important to be aware of tax changes that can impact you in order to ensure that you are filing your taxes correctly and that you’re taking advantage of all deductions and credits available to you. Fortunately, a CPA can enlighten you to every tax change that’s applicable to you so that you can rest assured that your taxes are done right.

Bear in mind that in order to know all tax changes that apply to you, you will need to work with an experienced tax professional, like the certified public accountants here at Golub, Senitt, Rosenberg & Co. This blog is in no way intended to be taken as professional tax advice, but rather to provide you with general information that may or may not apply to you and your specific tax situation.

Tax Changes For The 2024 Tax Season

Some of the tax changes for this year’s tax season are as follows.

Standard Deductions

For personal taxes, standard deductions have gone up. For the 2023 tax year, filed during the 2024 tax season, the adjusted standard deductions are as follows:

• $13,850 for single filers and married couples filing separately
• $27,700 for married couples filing jointly
• $20,800 for heads of household

California-Specific Tax Changes

Depending on your state, factors impacting your tax obligations may vary. As a CPA firm based in Los Angeles county, we’re here to help our fellow Californians with state-specific tax changes, too.

Here are a handful of recent California tax changes.

• California will raise the minimum wage for fast food workers to $20 an hour on April 1. Healthcare workers will see the first increases in their minimum wage on June 1. 
• California funds the state’s disability insurance program through a payroll tax. In 2024, the state is lifting the wage ceiling for the state’s disability insurance program. Top marginal individual income tax rate on wage income will become 14.4%. 
• California’s Foster Youth Tax Credit is increasing to as much as $1117 for the 2023 tax year.
• The New Employment Credit has expanded for qualified taxpayers engaged in semiconductor manufacturing, research, and development, as well as lithium production, manufacturing of lithium batteries, or electrical airplane manufacturing.
• A High Road Cannabis Tax Credit will be available to a qualified taxpayer that is a licensed commercial cannabis business that meets specified criteria.
• And more. Consult with your CPA to understand the tax changes that apply to you.

Tax Changes For The 2024 Tax Year

Some of the tax changes occurring in this new tax year are as stated below. While no new notable tax laws are currently on the horizon for 2024, this can change based on the 2024 November elections. 

Standard Deductions

Higher federal income tax brackets and increased standard deductions to help combat “bracket creep” from inflation will take effect.

For personal taxes, the standard deduction for the 2024 tax year will be higher than the 2023 deductions.

• $14,600 for single filers and married couples filing separately
• $29,200 for married couples filing jointly
• $21,900 for heads of household

Tax Bracket Adjustments

Your tax bracket is what your tax rate is based on your income range. These have gone up a few hundred dollars in order to counteract inflation. 

• 37% for individual single taxpayers with incomes greater than $609,350 ($731,200 for married couples filing jointly).
• 35% for incomes over $243,725 ($487,450 for married couples filing jointly)
• 32% for incomes over $191,950 ($383,900 for married couples filing jointly)
• 24% for incomes over $100,525 ($201,050 for married couples filing jointly)
• 22% for incomes over $47,150 ($94,300 for married couples filing jointly)
• 12% for incomes over $11,600 ($23,200 for married couples filing jointly)

Tax-Deferred Retirement Accounts

Tax payers will be able to contribute more to tax-deferred retirement accounts in 2024, something important to note for your tax retirement planning.  

Let Our CPAs Help You With Your Taxes

Working with a certified public accountant allows you to be aware of all your tax responsibilities. It’s part of our job to stay on top of changes in tax laws, regulations, and deductions and credits in order to provide both our personal and business tax clients with accurate and timely work.

Beyond helping you with personal taxes preparation or business taxes preparation, we provide year-round tax services, such as tax planning, tax audits, and more. While tax season is nearly upon us, taxes aren’t all that we do. We also provide financial advisory and consulting services to help your business grow. 

Contact us today to schedule your tax consultation, and experience the difference of working with dedicated professionals who care.