Running a small business means that you need to be willing to quarterback all of the gory details that keep you afloat.
One of the best things you can do for the health of your business and your own mental health is to tackle your taxes head-on. When you’re methodical and timely in handling your taxes, you won’t have to worry about setbacks or audits.
So what should you do when it’s tax time? We’re glad you asked.
Below are some tips for filing taxes that can help you out.
1. Collect All of Your Records
The first thing you’ll need to do is take a look at your books so that you know where you stand.
Take the time to handle all of your business documents so that your tax process is easier and more straightforward. When you’re addressing your taxes using solid information, you’re less likely to make mistakes.
2. Reach Out to a Certified Public Accountant (CPA)
Touch base with a certified public accountant (CPA) that can assist you when it’s time to file business taxes. When you have the assistance of a qualified CPA, you’ll be better able to parse out every detail and hit every step of your process.
They will comb through your bookkeeping records with a fine-toothed comb and will help you through each page of your tax filing.
3. Make Sure Your Employee Classifications and Human Resources (HR) Matters Are in Order
To file your taxes accurately, you’ll need to address all of your human resources (HR) matters. This means knowing how many employees and independent contractors you’ve been paying.
Make certain that all of your classifications are correct so that you don’t make errors with your filing. Look through your payroll records to be certain there are no discrepancies. You can also create W2 online with today’s technology.
4. Get a Handle on Your Deductions
One of your biggest responsibilities during tax time is to maximize deductions. This means understanding which write-offs you’re entitled to and making sure that you can accurately prove them.
Work with your certified public accountant to make certain that you’re reducing your tax bill as much as you’re entitled to.
5. File Your Taxes on Time
Finally, always make sure that you hit all of your deadlines when it’s time to file. If you miss the April 15 deadline and your quarterly estimated payment dates, you’re leaving yourself open to unnecessary fees that will inflate your tax bill.
Set aside about 30% of your revenue to be on the safe side, and pay estimated taxes, while also remembering to file your taxes by the deadline each year.
Use These Tips for Filing Taxes for Your Business
When you’re filing taxes for your small business, the tips in this article can help you out. Once you can comfortably handle your taxes, you will be better able to address all of your other business matters as well.
Running a small business is a labor of love, so make sure you’re always tackling necessities like taxes head-on.
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