I had a catastrophic accounting mistake that happened early on in my freelance career by assuming that any CPA could manage my taxes. What happened was the CPA who was more experienced with brick and mortar businesses, made mistakes that it took me years and hundreds of dollars to fix with the help of another CPA. That was essentially money and time thrown down the toilet and I was very bitter about it for a long time. However, I’ve chosen to use that bitterness to help teach you an experience.
Experience and Knowledge Really Matter with Accountants
If you have an online business, you need to find an accountant who is highly versed in online business taxes. There are many deductions to which you are entitled but if you don’t have the right accountant, you won’t be able to figure these out and you’ll likely make mistakes.
If the IRS thinks that you made mistakes you could be facing additional payments and penalties. In addition, it’s nearly impossible to resolve things with the IRS related to your business on your own so you’ll have to go and hire someone again.
This means finding another CPA after you’ve had a bad experience with your first accountant. One of my first years in business, I found out that the 1099s being submitted to the IRS were being triple counted. That means that Elance was invoicing me because they were keeping track of my earnings, the client was invoicing me and that money that I then transferred to PayPal was being counted a third time in PayPal as separate income.
It took months for me to try to sort this out on my own and with my original accountant until I came across a recommendation for an accountant team for home based business professionals. All that time, penalties were racking up. Talk about a nightmare.
Peace with Great Accountants for Your Online Biz
These people know what they are doing and they have already saved me thousands of dollars by finding deductions that my original accountants never identified in the first place. They also took over the management of the triple income counting issue immediately to improve the clarity and the documentation provided to the IRS.
I cannot recommend highly enough that you need to find someone who understands the unique situation you are in as a home-based business owner. You will have deductions and expenses that are outside the norm for a brick and mortar business and you need someone who understands all of the ways that he or she can help you. It is not just about filing your taxes on a regular basis when it comes to finding a professional who can assist you with your home-based business. It’s about what happens if the IRS audits you or gets in touch with you about a problem on your taxes too. You want somebody knowledgeable and professional stepping in to assist and help you with the situation.
Your financial house needs to be in order for your own sake and for the sake of the IRS. Make sure you’ve got someone knowledgeable helping you.