Five Ways a Des Moines CPA Can Keep Your Small Business off the IRS Radarcustomonecfo
For Des Moines small business owners to underestimate the possible repercussions from not being totally in compliance with IRS regulations can be a costly mistake. Here in the Des Moines Region, a qualified CPA can be your best line of defense and your guarantee that your small business stays off the IRS radar. The Consequences for Small Businesses Not Being in Compliance with the IRS This may be hard to believe, but there have been many reports originating from within the IRS that indicate that small businesses are considered the most likely targets for issues of non-compliance among agency personnel. Here are a few things to be aware of in this regard:
- Being audited by the IRS is time-consuming
- Being audited by the IRS can be costly
- Being audited by the IRS may result in a levy on wages
- Being audited by the IRS can ruin your credit
- Being audited by the IRS can lead to your assets being seized
- Being audited by the IRS can, in extreme circumstances, lead to incarceration
- Ensure you are using the right forms. If you’ve ever seen the extensive list of official IRS forms, you can understand how you might inadvertently choose the wrong one to file. A Des Moines CPA will ensure that all of your filings with the IRS are not only accurate but on the correct form.
- Ensure you are reporting all income received. If your bookkeeping is not particularly sophisticated, you may fail to report income paid to you—especially from third-party payers. Even if you accidentally failed to report income, that doesn’t mean whoever paid you will not report it. A Des Moines CPA will analyze your records to make sure you report every cent you earned.
- Ensure your business is in line with industry standards. The IRS has written standards for every type of industry, and they use it to compare what you are reporting to them and whether or not it matches these standards. A Des Moines CPA understands this process and will make sure your filings are in line with your particular industry’s standards.
- Ensure you’re correctly making the distinction between employees and contractors. For many years the IRS has been dealing with small businesses who, in an effort to save on payroll expenses, treat those who lawfully should be treated as employees, as contractors. A Des Moines CPA will help you to understand and appreciate the distinction before it leads to a costly mistake.
- Ensure your accounting process is accurate and complete. Are you currently keeping accurate records of all your income and expenses? If not, maybe it’s because you’ve never been shown a better way. A Des Moines CPA will not only straighten out your bookkeeping, they will advise you and show you how to manage it in a way that aims for total compliance with the IRS.