Owning a business, whether large or small, can be a very rewarding endeavor but it can also be very stressful. One of these stresses will probably result from taxes at some point in the year. This is however one of the things that you have to be able to handle when owning and operating a business. So instead of dreading it you should take the time to educate yourself and prepare for it, since it will come every year no matter what. And if you gain an understanding and knowledge of what you need to do it will free up time for you to focus on the other aspects of your business that help it grow.
Following this list will help you minimize the amount of stress and hopefully provide some sage advice to follow in preparation for the tax season.
1. Get started!
Last year you might have found yourself a little flustered, overwhelmed, or confused. If you get started as early as possible you can make time commitments everyday instead of cramming all of your tax preparation, organization, and filing all in one day or one weekend. This tip can save you from being stressed out which inevitably leads to mistakes.
Do you know where the receipt is from June 12th? How about August 10th? If you have to go rifling through a box of receipts and business transactions from the entire year you might find a few are missing or lost. This is why shoeboxes, bins, and physical storage systems are not the best way to keep receipts. While it is smart to keep physical backups of your expenses and bills an electronic organization system is theist way to access files quickly and efficiently.
3. Use an accountant
Accountant are experts in their field, their very complicated and confusing field. Using an advisor will help you plan properly and be able to guide you throughout the tax season. This doesn’t have to start with the weeks or months before tax season, it can be an all year round partnership. This way you can have someone who will give you advice if you ever find yourself in trouble or unsure of a transaction and how it affects your business.
4. File taxes online
This is where using an accountant helps. For small business owners the taxes that come with that title can be very confusing. If you file online, which in some states it’s the law, you can use their knowledge of tax requirements for small businesses and what exactly needs to be filed online without any oversights.
5. Don’t be late
Make sure that you do not miss the deadline for filing taxes. Preparing and organization will help you out here as you gear up to turn in taxes. If for some reason you forget to turn them in or you are not prepared enough to turn them in you can face some serious penalties from them IRS. This step is a culmination of everything we’ve covered and will be easier if you follow the steps.