Taxes and other financial business matters can seem very confusing, especially if you’re a new small business owner. You want to make sure that you don’t guess your way through filing your taxes or handling your business financial matters so that you stay on top of all laws and regulations.
If you’re nervous about the upcoming tax season, know that there are ways for you to better prepare so that you have less anxiety. Keep reading for some helpful tips on how to better prepare for tax season as a small business owner.
Start Organizing Yesterday
It’s important to keep organized! If you don’t yet have your financial documents together in a folder, you need to start as soon as possible.
Take some time to go through the piles of documents that you have lying around and get them put into appropriate folders. You should also start keeping a copy of all important receipts and statements. This will be helpful when it comes time to handle your taxes. It’s a good idea to consider software such as Quickbooks recurring billing to keep bills organized.
Hire a Business Tax Professional
Business taxes are completely different than personal ones, so they can feel a lot more complex. It’s important that you invest in a business tax professional to handle the filing process for you, especially if it’s your first time or you’re struggling greatly.
Getting a tax professional to work with you at the start of the year can also help you keep organized and make better tax decisions throughout the year.
Use Online Banking
Another great way to have better control over your business tax and financial affairs is by using online banking. This keeps things much more organized online and can allow you to have backup PDF documents saved.
It’s easy to download all records with online banking. This can fit well with the use of your business software like the previously mentioned Quickbooks. By doing so you increase the chances of accurately tracking sales and payroll taxes throughout the year.
Find the Best Tax Deductions
As a business owner, it can get expensive paying for daily business expenses. You can lower the taxes that you owe by writing off certain business expenses.
It’s important to stay on top of possible business tax deductions as you go throughout the year. If you’re unable to keep track of them or if you have any questions, it’s always best to hire a professional.
Consider an Extension
If your taxes and business finances are really out of order and you don’t have proper documentation, you may need to ask for an extension. According to the IRS, you can e-file for an extension, which makes it very easy to do. Make sure that you stay on top of payment dates though, as filing for an extension doesn’t allow you to pay later. This does give you time to collect more documentation and get your affairs in order.
Dealing with small business taxes and other financial decisions doesn’t have to be stressful. Take the above tips into consideration so that you can better plan for your tax year and have a lot less frustrations.