The decision to hire a tax advisory service depends, of course, on the possibilities, size or sector of the company or professional level. In general, for medium-sized companies that do not have specialized personnel in accounting and tax management, hiring a tax advisory service is a more than advisable option. In this post, we will show you the major pros and cons of hiring a tax advisor for your company or business.
It is always easier to take the accounts and taxation of your business to those self-employed professionals who are not forced to make the quarterly statements. That is, the self-employed who carry out professional activities and for which 70% of the income received is retained or taken into the account. Likewise, in the case of professionals who do not have staff in charge or who generate a low number of invoices and receipts, the autonomous management of the taxation is the most advisable option.
When to Hire a Tax Advisory Service?
In general, whenever you have staff in charge or have to meet tax obligations regularly, in the case of the quarterly statements mentioned above, it is advisable to hire an external tax advisor. In general, most of the SMEs do not have the human resources or time to take control of the tax obligations and accounts all through the year. In fact, one of the main causes of premature business mortality, the firms that have not passed two years since their founding, is derived from this incapacity.
The larger a company, without leaving the field of SMEs, the opportunity cost of the workforce increases. We mean that the time that a professional of the staff is ‘robbed’ to carry out the tasks of taxation is the time that this employee does not generate profits nor he or she is dedicated to own economic activity of the company.
Another advantage of going to a professional tax advisory service has to do with the possibility of receiving the outside guidance about what is doing well and badly in terms of daily activity, expense control and company management.
The experts recommend to outsource this type of service for the reason that the management of taxation of a company or business requires an important effort to update the knowledge and be aware of the changes in legislation.