5 Small Business Tax Tips That Don’t Involve Any Math
by Arina Smith Small Business 24 May 2018
Tax season coming up?
Small business owners are often thrown into a panic, faced with questions over what types of tax they should be paying, what deductions they can claim, and other financial questions they’ve been putting off.
This year, take a breath and get organized. Let us help you save money and time with these small business tax tips – and no tricky math.
1. Organize and File Early :
Getting to grips with your taxes as soon as possible rather than putting them off will save you so much stress.
You wouldn’t be too surprised to hear people make mistakes under the strain of tax deadlines. But mistakes can result in penalties for negligence, even if you made an error in good faith.
Take the pressure off this year by tackling the problem head-on, rather than putting it off for another day.
2. Use Accounting Software :
Regularly using accounting software to keep your books up to date means less panic at the last minute for your small business.
Why search for hours for old invoices and receipts when you can keep a running total?
Even an Excel spreadsheet detailing basic records of income and outgoings is a good first step. Though we do suggest you try out some of the tax return software out there
3. Check Out Last Year’s Tax Return :
Have a run through your previous tax return. Did you miss out on claiming for certain expenses? Did you under report and get penalized by the IRS?
This year, don’t make those same mistakes again.
Take a good look at the last set of numbers and identify any areas which weren’t quite spot on. Now you know what to look for this time around.
4. Hire a Professional :
Hiring a qualified accountant means you can get on with running your business, leaving tax matters in the hands of a pro. That’s a weight off your mind.
But professional accountants are often worth it in a financial sense too.
They won’t just help you not make mistakes and avoid fines for errors on your tax return.
The money they save your business by showing you new ways to structure your finances and report your tax could even outweigh the money they charge you.
5. Don’t Let Personal Mix with Business :
It’s not uncommon for a small business to be comprised of just one person. The business owner. Where this is the case, it’s also not uncommon for them to be using one bank account for both personal and business use.
Setting up a business account for business use makes more sense.
It makes it much easier to track expenses and claim deductions. You won’t accidentally claim for personal expenses, or miss business expenses in the mess, for example.
More Small Business Tax Tips and Advice?
Whether you’ve just started a new business or you’ve been up and running for a while, getting your tax right is really important.
Getting a fine from the IRS is just money down the drain from your perspective, after all!
Browse the other posts on our site for far more small business tax tips and advice on running your small business.
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