The Internet has paved the way for many things in society.
The Internet has allowed people to file their taxes online.
But before you file taxes online, you need to step back and think about some important things.
- The New Tax Law
When it comes to taxes, you must be able to grasp the effects of the new tax law – the Tax Cuts & Jobs Act (TCJA).
This new tax law has a wide spectrum of revised tax provisions, policies, methods, and rulings.
Here are some of the notable changes implemented by the TCJA:
- Individual taxpayer adjustment
- Itemized deduction adjustment
- New corporate tax rate
- Business interest deductions
- Service business limitation
- Bonus depreciation deduction improvement
It’s always a good strategy to discuss these tax changes with your tax accountant so that he or she will know which strategies to apply to your financial situation.
- Data Security
Most tax filing software is hosted on the cloud with many types of security restrictions.
A reliable virtual accounting firm has an excellent data security system which will ensure the safety of your information.
These are some of the common data security measures:
- Simple & advanced encryption
- Two-factor authentication
- Special user permissions
- Secure cloud backups
- Complete, multi-layered notification setup
According to different studies, companies that failed to prioritize data security suffered from losses. For a small business, such damage can be devastating.
Before securing a deal with a virtual tax accountant, do not hesitate to inquire about data security and software. If your business utilizes a different accounting tool, discuss it with the tax accountant so that everything is clear.
- Accuracy of the Process
Many professionals believe that e-filing is more accurate than paper filing. One reason is that online tax filing software is filled with reminders that will notify you of errors.
But is the process consistently accurate?
While some errors have been noted from time to time, the best virtual accounting firm will ensure the top-rate accuracy of the e-filing process.
- Accountant’s Strengths & Limitations
Understanding an accounting firm’s strengths and limitations is a beneficial strategy.
You shouldn’t just look at the service packages. Rather, examine the firm’s limitations so that you can determine if the services being offered are aligned with your needs.
Another way to assess the strengths and limitations is to determine the firm’s overall team credentials.
One tax accounting firm probably has a full set of vetted CPAs while another firm employs certified bookkeepers.
If your goal is to file taxes online, then you should pick an accounting firm with a specific focus on tax preparation.
- Your Company’s Financial & Tax Documents
With all the nuances that occur during the year, it can be easy to lose track of your financials and tax documents.
This is counter-productive because the tax filing process will become longer and more confusing.
As a business owner, you can’t afford to lose time with such a chaotic process!
The right small business accountant will help you sort your company’s financial documents in order to create better results.
All you have to do is to relay the necessary documents and work with the accountant during the tax filing process.
What Makes An E-File Tax Preparer Highly Reliable?
A virtual tax preparer’s reliability cannot be measured in a single factor. Rather, a competent virtual tax preparer has several valuable traits which make him/her reliable.
These traits are great examples:
Tax filing requires superb organizational skills.
Not only does the tax accountant need to keep track of any forms and schedules filed. But all related tax documents and notes as well.
This will make an audit less of a hassle should the IRS ever come knocking.
If your virtual tax accountant can sort details in a quick and efficient manner, you don’t have to worry about information discrepancies.
Sense of Innovation
Innovation is a unique trait that every tax accountant should have. If a tax accountant is innovative, he or she can come up with new strategies to speed up the e-filing process. Such accountant is valuable for your small business due to the efficient output.
You can also figure out an accounting firm’s sense of innovation by checking the nature of its service packages.
Do they offer the same accounting service packages in the market?
Or perhaps they have a unique twist?
While you shouldn’t just focus on that specific service uniqueness, it wouldn’t hurt to compare one accounting firm to another before making your decision.
A disciplined accountant is a capable service provider that you can always count on. Discipline is important because it signifies the accountant’s level of respect for your small business.
So if you want to file taxes online smoothly, you should look for a highly disciplined tax accountant.
Honesty is one of the traits that will strengthen your professional bond with your virtual tax accountant.
If a tax accountant is honest, he or she will be able to assess your financial situation without bias.
Always look for an honest and open tax accountant. Upon doing so, your small business will prosper steadily.
Since e-filing requires the preparer to be connected to the Internet, being tech-savvy is a huge plus. A tax preparer that can use different online techniques meant to speed up the filing process is totally reliable.
On the other hand, the virtual tax preparer must also know the top platforms being used to file taxes online. As a busy entrepreneur, you don’t need to know about these platforms but it wouldn’t hurt to ask your tax accountant about it.
Now that you know what makes a tax preparer reliable, it’s time to move on to another important question…
Do You Always Need to File Taxes Online?
The answer depends on your current business priorities and resources. Filing taxes online is advantageous in many ways but it’s still a strategy or an alternative option that you can mull about.
If your small business is positioned to grow in just a few years, then you should consider online tax filing. The amount of time saved can be utilized for improving your business growth or dealing with other major business concerns.
Once your business has grown substantially then you should really file taxes online. A truly dependable virtual tax accountant can do this job for you. Of course, paper filing is still a way to go but it can slow up everything.
Even though shifting to e-filing is easy, you might be skeptical at first. That’s normal – business owners love what’s familiar. Breaking the mold can be tricky. But if you really believe in the importance of e-filing, then take the leap!
Before You Leap to Online Tax Filing…
Online tax filing is an easy thing to do especially if you can count on the expertise of a reliable tax accountant.
So, do you think that you are ready to file taxes online? In a fast-paced digital world, you should do so. Schedule a call today and one of our virtual tax preparers will coordinate with you!