Professional Tax Planning can be a game changer for SMEs. Taxes are inevitable but they can be tricky and complicated to deal with. A trustworthy CPA can help you plan your tax liability, implement tax strategies, and maximize allowable deductions. This service is guaranteed to be the best decision you’ve made in managing your business finances. In this article, we look at the ins and outs of tax planning and what you can expect to pay in Dallas.
Why you should seriously consider tax planning services
There are a number of reasons, and we’ll cover these, but the most compelling reasons will be the tax savings and meeting your company’s legal tax obligations. The peace of mind you get from having a competent, knowledgeable tax professional on your side is priceless.
We’re not just saying that either. Most SBOs don’t have the wide and deep understanding of tax laws required for tax preparation and planning, and even if you’re interested in this topic, you likely do not have the time to spend hours on your tax returns once tax season rolls around.
The Internal Revenue Service (IRS) expects full compliance with tax law, and it can be ruthless toward businesses that do not take their tax filing seriously. If you go it alone, with limited knowledge, you could be paying costly penalties instead of reducing your tax liability.
Unfortunately, the IRS doesn’t have much sympathy for a lack of tax knowledge because they consider it a key skill for running a business. Sometimes the stress of trying to figure this all out (especially if you’re a new business) is just not worth it, and this is where the value of having a professional tax preparation expert skyrockets.
We’ve seen all sorts of things happen to SBOs over time, but the most common tax faux pas are:
Submitting the incorrect legal entity tax filing
Claiming business deductions or tax credits that are not allowed
Not claiming business deductions that are allowed, and thereby paying more tax
Not submitting tax filings by the correct deadline and thereby incurring penalties
Not making use of tax saving strategies such as retirement planning or investments
Submitting a tax filing without all income sources included and needing to submit an amended tax return as a result
Avoiding paying taxes by not submitting a tax return on a yearly basis
Being subjected to an IRS audit for unusual transactions
The problem is: The IRS always finds out eventually, and therefore it is highly beneficial to get ahead of problems and hire a qualified Certified Public Accountant to help you with tax planning. The accountant cost in Dallas may vary, but the investment is well worth it for peace of mind and financial clarity.
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Looking for a trustworthy, professional tax planning professional in Dallas? Look no further. Give Hall Accounting Services a call today or set up a free initial consultation now.
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How much can you expect to pay for tax planning services?
In Dallas, the cost of tax planning services varies according to the complexity of the tax situation and the method of billing.
Tax preparation fees are billed either hourly, or per tax return. These fees are at the discretion of the accounting firm or tax professional. In Dallas, there are no organizations that regulate the exact fees that accounting professionals can charge. For this reason the range of fees can be quite broad.
Before we get into the fees it is noteworthy that accounting and taxation services are regulated by several professional bodies in Texas. This ensures that the firm you work with complies with state and federal laws and accounting practices, and conducts themselves ethically. It is a good idea before you sign up for tax preparation services that you check who the firm is licensed with and the qualifications of the tax professional. Don’t be afraid to ask for these things - it will save you from dealing with inexperienced practitioners.
Contact the Texas State Board of Public Accountancy, the IRS, National Association of Tax Professionals (NATP) for details on registered tax preparers.
Cost of Dallas Tax Services
Small Business
Small businesses can expect to pay up to $500 per hour. Some firms will give you a quotation based on the exact services you need including the use of tax preparation software. This is a more accurate way of ensuring costs don’t rack up over the year or tax season.
For a small business owner to find value in services that could potentially cost up to $3500, you must ask yourself how much you could lose should you make any of the mistakes we discussed above. However, it’s not just about losing money on mistakes. You must consider the tax saving strategies that you could employ, with the help of a CPA, over the short, medium, and long term.
We recommend you make an appointment with the accounting firm. That way, you can ask direct questions about fees per hour, additional charges for amendments, and possible retainer fees. A firm that won’t discuss your needs with you first is probably not the kind of firm you want to sign up with.
One way to reduce the fees you pay as an SBO is by doing some slog work. This involves entering financial transactions into an accounting system (laborious), collecting documentation for your business tax returns, and using a bookkeeper to reconcile your accounts monthly.
This way, you can reduce the number of hours that the CPA will spend filing taxes. If you have this kind of set-up, then you can submit it to the CPA for checking before you file federal taxes.
This won’t get your benefits of tax planning services though. While tax preparation and tax planning are closely linked, one is a more specialized function - like financial planning. Having said that, it may be a good time to discuss what you can expect to get for your investment into tax services.
Tax preparation process vs. Tax planning
Tax Preparation
Data Collection
The goal of tax preparation focuses on compliance—ensuring that your tax returns are accurate and submitted on time based on historical financial data (income, expenses, credits). It involves collecting and organizing tax information.
Gathering of documentation can include income statements (W-2s, 1099s), expense receipts, and records of charitable contributions, retirement contributions, etc. It can also include forms like Schedule C (for self-employed individuals), Schedule E (for rental property owners), or investment forms like 1099-DIV.
Deductions and credits
The tax preparer will identify relevant deductions (e.g., medical expenses, mortgage interest, allowable business expenses) and tax credits (e.g., child tax credit, education credits). An initial calculation will be made based on the information provided
Filing
The preparer will finalize the tax return once you have approved the information, and submit it by the relevant deadline.
IRS representation (if needed)
The tax preparer can contact the IRS on your behalf to attend to any audits or inquiries made by the IRS.
Who can prepare taxes?
These services are provided by Enrolled Agents, CPAs, and non-credentialed preparers.
Average costs per outcome for tax preparation
Outcome | Average Hourly Fees |
Form 940 (Schedule C, Self-Employment Tax) | $150-$300 |
Schedule C (Business Tax) | $150-$300 |
Form 1040 | $150-$300 |
Form 1065 (Partnership) | $200-$350 |
Form 990 (Exempt organization) | $200-$350 |
Form 1120 or 1120-s | $200-$400 |
Retainer for tax preparation | $400-$600 |
Retainer for tax preparation & IRS audit | $800-$1000 |
*based on average costs published by accounting services online
As you can see here tax preparation is very much part of getting your tax return filed correctly and on time with the IRS. Tax planning however is about looking forward, aiming to minimize tax liabilities in the short, medium, and long-term and for this you need a smart CPA with a few years experience.
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Don’t let tax compliance slow you down. Let us handle the complexities of tax regulations for you. Call now to ensure peace of mind and focus on what really matters—your business’s growth.
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Tax planning
Tax planning is forward-looking, aiming to minimize your tax liability over the long term through proactive strategies. This service involves analyzing your financial situation and future goals to recommend actions like changing your filing status, timing income, or making specific investments.
Perhaps you’re wondering at this point if tax planning is the right thing for you after all? We can unequivocally say yes! The reason for our confidence is that we know it’s one thing to get your taxes in on time and without an IRS audit, but it’s another to pay more taxes than you need to, year after year. If you start now, strategically looking at what you can do to reduce your tax liability, you will win in the long run. Don’t allow the IRS to eat up your business' profits - get smart and get proactive.
Assessment of current financial situation
An experienced CPA will review your income, expenses, assets, liabilities, investments and any recent changes to tax laws. They will then go to work, ensuring your business is structured for tax efficiency.
Strategic tax planning not only minimizes your current tax expenses but also positions your business for better financial health in the long term. Foreseeing future tax implications of business decisions aids in structuring your operations to be more tax-efficient.
This proactive approach can significantly enhance cash flow management, allowing for more robust investment in growth initiatives and innovation while maintaining compliance with evolving tax laws.
Implementation and monitoring
Once strategies are outlined, the tax planner helps you implement them, which might involve reallocating investments or timing large expenses to maximize deductions.
Continuous monitoring ensures that plans stay aligned with changing tax laws and your financial goals.
Examples of tax planning strategies
S-Corp Election: An S-Corp allows profits and losses to pass through to the owner’s personal income, avoiding double taxation at the corporate level. This can reduce the overall tax liability for small businesses that are profitable.
LLC Election: Provides flexibility in taxation since an LLC can choose to be taxed as a sole proprietor, partnership, S-Corp, or C-Corp, depending on the business's tax planning needs.
Accelerating deductions: By prepaying expenses like rent, utilities, or other necessary costs before the end of the fiscal year, businesses can lower their taxable income in a high-profit year.
Section 179 deduction: Allows businesses to deduct the full purchase price of qualifying equipment and software in the year they are bought and put into service, rather than depreciating them over several years.
QBI deduction: Allows eligible businesses (typically pass-through entities like S-Corps, LLCs, and sole proprietorships) to deduct up to 20% of their qualified business income.
Claim the Research and Development Tax Credit: Small businesses involved in developing new products, processes, or software can claim the R&D tax credit to offset costs related to these activities. This credit reduces the amount of tax owed dollar-for-dollar.
Average costs per outcome for tax planning
Outcome | Average Hourly Fees |
Strategy planning meeting | $350-$500 |
Implementation and monitoring (depending on complexity) | $500-$3500 |
As you may have realized, the costs significantly increase with the complexity of work, and can take a number of hours to fully complete. One way of avoiding uncontrolled accounting fees is to enter into a retainer contract with your preferred firm.
Some will work out a package for you based on bookkeeping services, tax preparation and tax planning. This will then be deducted as a monthly fee, and is probably the safest alternative, unless you only want ad hoc work done.
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Get certainty about tax planning fees. Use our taxation calculator now.
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Concluding Thoughts
For small business owners it’s important to consider tax planning as an ongoing process instead of a once-off expense. While the cost of tax planning services in Dallas vary greatly due to unregulated fee structures, size of accounting firms, expertise of the CPA, and the complexity of the work involved, investing in this service will bring long-term tax relief.
The upfront costs of working with a tax professional pale in comparison with the peace of mind and security of knowing your taxes are ticking along like a finely tuned engine. Instead of staggering around in the dark, with a hit-and-miss approach to business taxes, you can end the whole cycle by signing up for tax services today.