Cost of doing taxes for those with a small business?

[ndemge]

Those of you that own a business,,,, do you do your own taxes, or pay someone?<br /><br />This is my first year owning a business, LLC...<br />Reading everything that has to be filed, deductions for % of home used for business, seems pretty complicated, and I'm afraid I'll miss something or not dudcut something I should have.<br /><br />For those that pay someone, do you just go to an H&R type place, or have an accountant you hire?<br /><br />Total profit for the business after expenses, tools etc this year is less than $1,000, just want to make sure I do it all right.

 

[Dunaruna]

Re: Cost of doing taxes for those with a small business?

My wife and I do the everyday stuff using MYOB. We then upload the company file to our accountant and he does all the complicated stuff. My understanding is that its mostly computer programs that do the final assessment. He charges us about a grand a year, its deductable.<br /><br />Small business needs to be 'creative' to survive. For example: I've just had new alloy pontoons made for my houseboat - it was billed to my business as a new tray for the work truck - deductable <br /><br />Aldo

 

[spratt]

Re: Cost of doing taxes for those with a small business?

Originally posted by Dunaruna:<br />Small business needs to be 'creative' to survive. For example: I've just had new alloy pontoons made for my houseboat - it was billed to my business as a new tray for the work truck - deductable Aldo

I 'spose you can't be much more creative than that Pontoons on a truck...not bad!! BTW, I work for the IRS, and I will be over in a couple hours to see those new "trays"...have dinner ready! Bribes never hurt!!

 

[spratt]

Re: Cost of doing taxes for those with a small business?

<br /><br />Thsi s what happens next!!!

 

[Dunaruna]

Re: Cost of doing taxes for those with a small business?

OMG!<br /><br />Me thinks you in trouble with that one.

 

[spratt]

Re: Cost of doing taxes for those with a small business?

Sheesh...you mean you think I will get mah 1st POOOOOOOOOOF???

 

[jtexas]

Re: Cost of doing taxes for those with a small business?

What do they call the Australian federal tax enforcement agency, anyway?<br /><br />ndemege, as a CPA (no longer in public practice), I can tell you that LLC tax returns are a minefield even for the most simple of businesses. I wouldn't recommend H&R - they'll turn you over to somebody they hired off the street a couple weeks ago. Get a recommendation for a reputable CPA from a businessman, your local Chamber of Commerce or your lawyer. Do as much of the accounting as you can like dunaruna says to save $$ but still $1000 or more isn't unlikely. A local firm or sole practitioner could handle your returns for less $$$ than a national firm. A CPA who has a regular job & a few clients on the side would be a good deal just be sure of his credentials. I did that for a few years until it got too time consuming.<br /><br />After the 1st year or two you might decide to do yourself if your business doesn't change a lot.<br /><br />good luck!

 

[roscoe]

Re: Cost of doing taxes for those with a small business?

I paid $108 for returns, done by a local cpa, for my home business, not an llc. Includes keeping track of the depreciation of all equipment, all schedules, and forms included. It cost $125 the first year because of the time involved in setting it up.

 

[Link]

Re: Cost of doing taxes for those with a small business?

Have been using an accountant for 15 years. Wouldn't even think of trying to keep up on all the tax crap myself. Sorta like the saying, the guy who defends himself in court has a fool for a lawyer. <br />Another way to look at is what do you want to spend your time and energy on? Building and running your business or PaperWork!<br /><br />When we had a shop up north, at the end of the day I would fill out my deposit, take my Z'd tape from the till and a copy of all checks written for that day and put them in a envelope. When I got home I would transfer the data into quick books. (Which our accountant set up for us) <br />Each week I'd drop off six envelopes with a data disk to her and pick up the package from the week before. Done deal! <br /><br />But thats just me. I hate paper work and would not pay taxes myself. So I let her keep me out of jail! <br /><br />She also does our personel taxes along with my MILs<br /><br />Don't have anything bad to say about H&R, but I sure wouldn't trust them like I trust this Lady!

 

[Kiwi Phil]

Re: Cost of doing taxes for those with a small business?

I too run a business. <br />I use Quicken on the computer. <br />I do my own Goods and Services tax return quarterly, plus the employess wages....but I take everything to the accountant each year and have her "sort everything out" and submit the "return" to the tax Dept. <br />She checks my GST and Employee tax is correct.<br />Been in business for 30yrs and an accountant is a must. Cost me under $1,000 per year.<br />Secret to it is to keep accurate records to give your accountant.<br />Guess most of us are "creative", just like Dunaruna. Jeeez, never thought of pontoons against the truck. That's got my creativity going I can tell you. <br />Cheers<br />Phillip

 

[KaGee]

Re: Cost of doing taxes for those with a small business?

H&R is for the average guy. If you feel like you need a hand, find a small CPA. <br /><br />Otherwise, Turbo Tax by the folks @ Quicken has several different levels you can buy, depending upon your requirements. I have a partnership, and each partner does their own. This works for me.<br /><br /> We have a CPA do the reporting for the partnership.

 

[Kiwi Phil]

Re: Cost of doing taxes for those with a small business?

Here is another hint.<br />I have an old Quicken Program, maybe Quicken 5. I just bought it....no more costs.<br />I believe with the new Quicken Programs, not only do you have to buy them, but you also have to pay an annual fee to keep them. I could be wrong, but check this point out. <br />One aspect of running a business sucessfully, is keeping a handle on ALL your expences, cause the more you pay out, (wether Tax Deductible or not) the less you have in your pocket.<br />I guess those on this Board that have accounting experience may go along with me in saying all you need is a simple accounting program that you can raise individual Ledgers in and produce a simple Profit and Loss Account from. Then take this along to your accountant and let them do the rest. You do need a proper practicing accountant though.<br />If anyone feels I am wrong here, please speak up as would hate to give bad advice to someone starting out.<br />Cheers<br />Phillip