Running any small business involves a tremendous amount of dedication. For small business owners operating in the construction industry, many of the demands of ownership are magnified. Every job has high stakes and requires extensive planning. Executing those plans requires an impressive mix of brains and muscle.
When tax season rolls around, the last thing you need is a filing result that doesn’t make the most of your company’s revenue by maximizing deductions and minimizing your overall payment. Most importantly, you need to know that the well-being of your company isn’t jeopardized by a costly tax mistake that gets you in trouble with the IRS.
To take the hassle and anxiety out of your relationship with taxes, work with a professional tax service. You’ll save money, streamline your administrative workflow, and avoid paying painful fees or interest.
Here are a few meaningful benefits enjoyed by small construction business owners who work with professional tax services.
Tax Services Can Help You Save Money
First and foremost, professional tax services help small construction businesses save money.
Your tax service will perform the detailed and time-consuming work of handling your taxes while you stay focused on running your business. Your accountants will make sure you’re benefiting from every possible deduction and credit that reduces your tax burden.
The difference between filing your own taxes or working with a service can be significant. You’ll enjoy saving funds that improve your company’s bottom line and can be reinvested in growing the business.
Tax Services Can Help You Avoid Paying Penalties and Interest
Professional tax services help small businesses avoid penalties and interest payments. Penalty charges may occur if you:
- Fail to pay your taxes on time
- Fail to pay the proper amount owed
- Submit a “bounced” payment that isn’t covered by your account
Interest charges may apply when paying penalties, driving up the expense even further. When working with professional accountants, they’ll make sure that your payment is on time and successfully submitted. If you’re already dealing with penalties or other tax problems, your tax service will negotiate on your behalf with the IRS to help resolve the issue.
Tax Services Can Maximize Your Deductions
Maximizing tax deductions is a major benefit of working with a tax service. Deductions for small construction business owners may include:
- Depreciation costs
- Self-employment tax
- Subcontractor labor costs
- Marketing and advertising
Possible deductions vary widely from business to business and from year to year, so it helps to have tax pros working on your filing to make sure that you’re getting as much money back as possible.
Tax Services Can Assist With Payroll Taxes
Payroll tax administration is another area in which tax services are incredibly helpful.
Payroll taxes are complex. When they’re mismanaged, major penalties and hassles can occur. Your tax service will make sure your payroll taxes are properly withheld and filed so that this aspect of your business runs smoothly.
Tax Services Can Help You With Business Licenses and Permits
Some tax services may also provide assistance with business licenses and permits. Your full-service accountants may help you determine which special licenses and permits you need, help you obtain them, and make sure that the expenses are properly accounted for in your tax filings.
Tax Services Can Help You Stay Organized
Working with a professional tax service is a game-changer for small business owners who need a hand staying organized. A tax service, especially one that specializes in year-round bookkeeping, will help you create and maintain systems for tracking receipts, invoices, and other documents so that your financial records are always up-to-date and organized.
Tax Services Can Give You Peace of Mind
Finally, professional tax services offer the peace of mind that comes from knowing that your taxes are being handled by experts.
Dealing with taxes can be stressful, especially as your business growth results in more complex filings. When you work with a professional tax service, you can rest assured knowing that your tax payments are made in full compliance with the law and to the maximum benefit of your business.
Get Construction-Focused Accounting Services Today
Stratlign is a full-service accounting firm dedicated to serving small and medium-sized businesses in the construction and trade industries. We love working with general contractors, plumbers, electricians, and other hard-working business owners who provide essential services to their communities.
To learn more, schedule a 15-minute call with Stratlign’s tax experts today.