Filing a corporate tax return can often be very expensive. According to the National Society of Accountants, the average cost for the average cost paid to certified public accountants to file a corporate tax return averages is just over $800 per return.
Furthermore, depending upon how well your business maintains records, receipts and other required documentation - the cost associated with filing a corporate income tax return can often go well into the thousands of dollars. Therefore, here is a step-by-step guide that will help you to reduce the costs of your next corporate tax return.
Step 1 - Keep Good Business Records
One of the biggest causes of small businesses having to pay very high corporate income tax return preparation fees is an inadequate bookkeeping or record-keeping systems. Therefore, you should always make sure that you keep all invoices, receipts, work orders, bank statements and any other type of business financial records very well organized and also maintain good monthly reports regarding income and expenses.
Furthermore, you may want to consider using some of the very popular software applications that are sold to help make this process much easier. Software applications like QuickBooks and Peachtree Accounting are used by many small businesses and also offer a way for you to quickly transfer detailed financial information and reports to your CPA.
Step 2 - Use a CPA throughout the Year
Another way to substantially reduce the amount that a CPA will charge you to prepare your corporate income tax return is to simply use the accountant’s services throughout the year. Many certified public accountants offer discounted rates to businesses that allow the CPAs office to help the business maintain books and
records in a proper and organized manner.
Generally speaking, you can get fairly substantial accounting services for under $100 per month. While $100 per month is slightly more than the average cost for filing a corporate income tax return, the accountant will probably also offer a very reduced rate for filing your corporate income tax return because the accountant already has access to much of the information needed to file the return.
Furthermore, by allowing the accountant to help you all year long, your business will probably be eligible for more credits or deductions as the accountant it's well acquainted with your individual business situation. Therefore, in most circumstances using an accountant’s services on a monthly basis will almost always help you save money on income taxes in the end.
Step 3 - Make Your Accountant’s Job Easier
Another way to save a lot of money on accounting services and fees that accountants charge to help you prepare your corporate income tax return is to make the accountant's job as easy as possible. If you become well versed in the use of popular small business accounting software, you can quickly run popular types of reports and print them out for your accountant’s review.
By compiling organized business financial reports for your accountant, you will allow the accountant to save valuable time in helping your business maintain proper bookkeeping records as well as make your accountant’s job much easier when it comes time to file your federal your corporate income tax return. By saving your accountant a lot of time, your account will probably reward you with much lower fees and rates for bookkeeping services and filing your corporate income tax return.