There is much more to tax planning and preparation than completing tax returns, although accounting firms prepare both state and federal corporate tax returns. Accounting firms also prepare year-end business documents, such as IRS owner K-1, employee W-2 and 1099-Misc forms. Business owners can also give accounting firms authority to represent the business owner's interests regarding notices, information requests or audits from the Internal Revenue Service (IRS).
Additionally, business owners need to establish business entities that create most favorable tax scenarios. Accounting firms help identify the best solutions and that aid in the creation of entities that make the best tax sense for the company.