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Discussion in 'Business Operations' started by cookedonphonics, Oct 20, 2006.
My question is....
Are the services provided by an accountant a write-off?
Didn't you just get a new accountant?
Yes they are. Any item or service that you pay for as part of operating or managing a business is a business expense. (AKA: Tax writeoff)
I am an accountant and do my own books. I write off everything I can...within questionalbe reason. I gotta be a little honest...
Its a smart move. I even had a secretary part time at first.
Sent my fiance back to school for accounting (for me), finance (for her)
Services provided by an accountant are an expense, I just paid a modest sum to a tax expert for the same reason...
Although I was saving close to $1,000 / year by doing my own taxes (and paying myself a wage vs. the profit method) here is also what I found:
Every single quarter I spent HOURS filling out 941's and 760's and FUTA and SocSec and I forget what else but basically at the end of the year plan on doing W2's and all sorts of other crap. Then, write a check for each form and make sure the amount and payee are correct (there were at least 3), get 3 envelopes and write the address on there remembering that each one goes to a different place, then put a stamp on each and then make sure to place the proper form and its corresponding check in the appropriate envelope (omg do NOT mess this up), then you're ready to mail them off...
It worked fine for a while, but sure enough there went a payment once to the wrong address... Don't think this is easy to fix, first the IRS cashes the check and credits it to your account, then sends you a letter telling you they have a credit for you and they don't know what to do with it, so please fill out the proper paperwork (another form) to let the IRS know where this money belongs.... Months later, another letter from the IRS stating you owe money (usually the same amount but not always) to yet another department and last but not least, a third department wondering why they have your forms LOL !!!
Don't forget with certain forms and taxes, even if you are not required to pay said tax, once you start paying it, you can't just stop.
It was a mess!
In the end, for a sole proprietor I found it best to pay taxes on your profit and the rest is yours, sorta... Way, way simpler.
But yeah, without an expert in this field, I would've never seen the light of day.