Doing accounting for self-employed individuals is a challenging task. There are plenty of variables that come with it. More precisely, primarily self-employed individuals need the accounting services of a Certified Public Accountant. On the other hand, a regularly salaried person hardly needs an accountant beyond income tax preparation. However, if you are an artist who is considered a self-employed individual in the eyes of the IRS, find out how expert income tax services for the self-employed can help you.
Prepare optimized income tax returns
Your accountant can prepare optimized income tax returns for you. An expert accountant uses all the available qualified business deductions to reduce your taxable income. U.S. tax laws provide numerous leverages to self-employed individuals. They can write off various business expenses from your gross income in order to reduce your taxable income and save you money on taxes. An expert accountant maximizes the deductions on client income tax returns.
Prepare financial statements
This is something that is of prime importance to any business. An accountant can prepare financial statements for you. Financial statements include balance sheets, income statements, and cash flow statements. They provide the complete picture of how the business fares over the year. Any artist who wants to grow needs financial statements to make sensible financial decisions.
Tax guidance
Many self-employed individuals do not know about the tax benefits the government offers them. An expert accountant or accounting company that does income taxes for artists can provide you with tax guidance. It helps you do proper tax planning, establish the right structure for managing accounting and bookkeeping operations, and ensures tax compliance.
Apart from these three key services, your expert accountant can help you with audit representation, tax-saving investment options, choosing a business structure, and various other accounting services.
