3 Reasons Your Bookkeeping Accountant Should Also Do Taxes

No matter how organized and responsible you are with your own money, managing the finances of a business is a much more complex and demanding task. You will need to be extremely precise and organized regarding bookkeeping and filing taxes, as there are certain rules and regulations you must follow. Unfortunately, while many believe they can tackle business finances alone, they may be falling short. That's why accountants have proven vital in many business operations, ensuring that the finances are managed properly.

That said, when it comes to handling taxes, you might be tempted to do them yourself. Additionally, you might be thinking of hiring another accountant specifically for the job. However, if you have an accountant for your books, we highly recommend that they do the taxes for you, too! Here's why:

1. Enhances Security

When sharing financial data with an accountant, there is a chance that it could be lost, changed, or taken by a malicious party. This risk is greater when the data is moving, like when it is sent by email, fax, traditional mail, or through a secure online system, then when it is stored. For that reason, it is important to minimize the number of times you send information, as doing so increases the chances of it being stolen.

Using one accountant for both bookkeeping and tax preparation will reduce the chances of data theft, as you won't need to send out the same financial information multiple times. This helps keep your information more secure.

2. Promotes Accuracy and Consistency

When you have multiple channels of communication open between you and the various accountants who need the same information, it can create confusion, leading to mistakes and inconsistencies. For example, if your tax preparer requests information from your bookkeeper at the beginning of the year, but your bookkeeper adds additional expenses later, those expenses may not be shared with the tax preparer. This could lead to errors and inconsistencies in the tax return.

Only using one channel of communication greatly reduces the risk of inconsistencies that can end up costing you a lot of money in the long run. Plus, dealing with only one channel makes your life easier, too, so that's a win-win.

3. Saves Lots of Money

Inconsistencies can harm a business. If the business notices mistakes in their taxes that were previously submitted, they will need to go back and correct the mistakes, which will require additional time and money to do so.

Having the same accountant for both your taxes and bookkeeping can be very beneficial. It eliminates the need to transfer data between multiple financial professionals and makes your taxes a lot easier to prepare. This also saves you time, as your accountant already has the books and can start working on your return immediately. Having one professional handle all of your financial information means you can trust them to accurately and efficiently prepare your taxes.

Conclusion

As a business proprietor, you must be mindful of your time and ensure you are not wasting it on monotonous tasks. Duplication of effort can be a huge drag on productivity. Regarding accounting, having multiple people doing the same job can be a huge waste of resources. Having a single accountant to manage your accounts can save you from having to do redundant work.

So, save yourself plenty of time, money, and energy and work with one professional accountant who can handle all your bookkeeping and tax needs!

Hawk Tax Solutions offers a team of incredibly experienced tax and accounting professionals, offering great solutions that bring peace of mind to clients. If you are looking for accounting services for your company, reach out to us today!