Taxes are due, and many of my friends are scrambling to get their returns wrapped up. It’s an experience I’m very familiar with, but this year’s return was a bit different. The process was a bit complicated, but I’ll try to explain the steps as best I can.
- Mail my paperwork to my accountant.
- Magic happens.
- I sign my return and mail it.
Last summer I found an accountant in Chicago (thanks to a recommendation from Jason at BarCamp) and my tax and bookkeeping work has become immeasurably less tedious and frustrating. It’s what I consider a VGE (very good expense), one I’m happy to pay for many reasons:
- I’ve learned more about corporate entities and their tax implications, various deductions, etc. in the past year than I ever did in business school – knowledge that will help me for the rest of my life.
- I saved a considerable amount of money based on my accountant’s recommendation to switch entities, and I was able to get my request for said change approved even though the deadline had long passed. It’s amazing what one letter from your accountant chock full of references to tax code can do.
- I have a much better understanding of where my money goes every month.
- I’m able to take all the deductions available to me every year with confidence instead of fear.
- My time spent talking with him is with pre-tax money.
Find one that’s comfortable working with smaller companies, that doesn’t look to charge you for every email or phone call. Mine actually told me to let him know what I’m comfortable paying and we’d determine a plan that works based on that number – in my case we meet quarterly and his firm reconciles my statements each month. I still enter my transactions, but the reconciliation process makes sure he’s fully abreast of what’s going on and how money comes in and out.
I can’t recommend getting yourself an accountant highly enough. You’ll pay some money, especially while you’re getting your books organized, but it’s well worth the expense.
