Hi, I am a first time small business owner in MA. I started a S Corporation in 2005. I was wondering what do I need to do as part of the end of year tax procedures. Do I need to get my financial statements audited. For what services I need a CPA help and what I can do myself. Thanks, Nan
Unlike some other coutries, the US does not require financials to be audited. Therefore, you just need to file the corporate and individual returns.
However, unless you understand how S-Corps work, I wouldn't think you can do them yourself. C-Corps, while easier, are still a little too much for someone with no formal training as there are too many tax issues.
Anyways, get a CPA to help. A small S-Corp should be under $1500 (including individual returns) unless you have other complicated issues.
"nan" wrote in news:1139445287.483139.109770 @o13g2000cwo.googlegroups.com:
Hi Nan --
Congratulations on your business. You don't need to be audited, but you do need a tax pro to help -- S-corps aren't something to tackle on your own (especially if you need to keep the business running while the taxes are being done!).
Find yourself an Enrolled Agent or CPA who specializes in small S-corps for the business and related personal returns. Get them done right.
Catherine (also in Massachusetts!)
Hi, I am a first time small business owner in MA. I started a S
I'm certain that any shareholders in the S-Corp might appreciate audited financials. Furthermore, many vendors granting credit require them. Then, there is the issue of whether or not a tax professional would want to accept unaudited figures when calculating taxes.
Nan,
Your best bet is to get the financials audited by an independent CPA firm and to also have them do the taxes.
Beverly
Hi Nan,
I worked in public accounting for over 17 years doing both auditing and tax preparation. As a small business you would not want to incur the cost of obtaining an audit unless required by a bank. A good accountant can usually get a bank to accept a compilation or review report rather than an audit and they are much cheaper. I would suggest that you hire an accountant to prepare your tax return for you. Ask some other small business owners you know or perhaps your attorney, friends etc. to recommend one. A good tax accountant can help save you more money than they will charge by finding deductions you could easily miss.
I would not listen to Beverly's advice as an audit is very expensive and most businesses will only get one when it is absolutely needed and I'm guessing that you are the only shareholder in the corporation. Even if there are other investors they will tell you if they want to incur the expense of an audit.
Hope this helps,
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