Are You Risking Errors on DIY Taxes?

Although DIY is great for small home projects, it’s not great for other things like business taxes. There is a misconception that doing business taxes is very similar to standard income taxes, but this misconception can trip you up and lead to unfortunate errors that could come back to bite you later.

According to USA Today, the error rate for paper return taxes completed by individuals is 21%. Running the risk of these errors is unnecessary when there are capable bookkeeping services in your area. Let’s look at a few instances in which you might be risking errors when you DIY your taxes.

You’re Self-Employed

Taxes for self-employed individuals can be a complicated task because many factors apply to self-employment that simply don’t apply to other types of jobs. Some of the most common mistakes that self-employed individuals make on their taxes include underreporting or underestimating their income, missing important deadlines, and leaving bookkeeping for the last minute.

In many cases, self-employed individuals are making mistakes that lead to their own losses, such as not claiming things on their taxes that they're entitled to because they're worried about getting in trouble with the IRS. When you work with a professional with bookkeeping services, you can rest assured that you are getting everything filed correctly and that you are getting back any refunds that you are entitled to.

You've Made Big Business Decisions

Another category of people who should be using bookkeeping services for taxes would be those who have made big business decisions in the last year. Whether you've sold part of your business, acquired a business, or expanded your business, these larger decisions can have a big impact on your tax preparation, which can lead to small errors if you're not sure what to look for or how to file correctly. Not only do you want to avoid errors so you don’t get in trouble with the IRS but you also want to make sure that you’re getting any tax breaks that you’re entitled to. Bookkeeping services can help to keep your books in great shape, and Kingsbridge Brokers also offers quality tax planning and consulting services, so you can feel ready.

You Lack Confidence

If you’re very nervous about filing your taxes, you’re more likely to make costly mistakes. Bookkeeping services can help you by taking care of all of the tax details for you and helping you get any refund you are owed.

These are just a few examples of why you shouldn’t DIY your taxes. From complicated paperwork to nerves, several things can impact your chances of making mistakes. Fortunately, bookkeeping services are here to help! If you’re looking for reliable bookkeeping services, tax planning, and tax consulting, please call us at Kingsbridge Brokers today.