Smart tax-filing tips for small business owners
Tax preparation and filing can give several sleepless nights to small business owners who have been too preoccupied with their core business to sort out their tax issues. It is understandable. But there is no hiding from taxes. Accurate Tax & Bookkeeping shares some great tips that can help small business owners stay organized throughout the year when it comes to taxes.
1. Be consistently organized
That last moment collection of data when the tax filing deadline is looming overhead often leads to inaccurate or incomplete results besides causing immense stress. Sounds familiar? Small businesses can avoid such situations by staying organized across the year. Being consistently careful by maintaining a separate file for taxes and digital categorization of income and expenses can make tax filing a stress-free event. Consistency and organization are key.
2. Record revenues and expenses
Sorting through the pile-up of revenue and expense data at the year’s end can be frustrating and inefficient. Keeping a clear record of revenues and expenses on a daily/weekly basis with the help of a software or an accountant not only makes tax filing a seamless process but also helps streamline the business. The constant data input of business cash flow and net income/loss can make a difference to the way a business is managed.
3. Regular checkpoints
Get rid of the unpleasant surprises at the end of the year by proactively maintaining all tax-related matters across the year. This regular check-in not only allows business owners to understand key performance indicators but also breaks up tax preparation activities into smaller and manageable chunks.
Small business owners always have their plates full. Focusing on core services becomes imperative to expand and grow. But at the same time tax matters cannot wait for other matters to get resolved. Therefore it is a wise decision to delegate the tax matters. Especially with any tax law changes, it's critical to work with a CPA and adopt the best business structuring strategies based on accurate calculations.
5. Financial planning meets tax planning
Business owners should make taxes part of their financial planning. It helps reduce a business’s tax liabilities and optimally utilizes tax exemptions, tax rebates, and benefits as much as possible. By regularly checking if the records are up to date, and meeting planners to ensure all possible tax reductions have been applied, business owners can file their taxes without any stress and confusion.
6. Leverage specific tools
Technology is a blessing. Business owners can use various free or economical tools to organize and auto-code their business transactions and simply share this electronic data with their accountants. There is no need to sift through old documents at the last moment. This little step at the beginning of the year will make the year-end peaceful and stress-free.
7. Track expenses weekly
Small business owners must make time to balance and track their expenses. This weekly check will help them stay alert about their tax liabilities and protect them from any penalties from the IRS. Keeping personal and business expenses separate is crucial.
Accurate Tax & Bookkeeping Services specializes in handling financial needs for businesses of all sizes.
Greg J. Menia founded the tax preparation service company in 2010, having worked in business tax services since 1995. The team performs tax services for small businesses and large businesses alike, serving all areas around Tampa, FL.
Call (813) 655-9702 today for “accountants near me” in Brandon, Florida. Alternatively, contact Greg and the team at Accurate Tax & Bookkeeping Services by emailing email@example.com or visiting the offices at 710 Oakfield Dr. Suite 159, Brandon, FL 33511.