Tax Season is Coming! Is Your Business Prepared?

Preparing taxes for small business can be a real challenge for owners. Between day-to-day operations to marketing your product, finding time to do yearly small business tax preparation isn’t easy. Small business tax preparation experts can assure your taxes are filed correctly and on time.

At the end of the year, many small business owners are looking for ways to minimize their companies’ tax liability for the current tax year. This year’s conversation with your tax professional could be an important one, as many accountants more fully grasp provisions of the Tax Cuts & Jobs Act for the second tax year it’s in effect, with potential impact on the way business income is calculated, the deductions you can take, and more.

Here are 5 tips to assist you in being better prepared.

1. Get Organized

It is essential your business is making estimated quarterly tax payments. If not, you may be subject to penalties. Additionally, separating personal and business bank accounts is a must. This same principle also applies to home offices, which must be separate space used solely for business. Starting a savings account specifically for taxes can help you stay organized to assure you have money set aside when you need it. Keeping detailed notes such as logging all travel, car, and other expenses as they occur can help you understand your expenses. Additionally, digitized receipts can be a huge time saver, since some apps even directly import them into your spreadsheets.

2. Use Technology

Excel is an accessible and passable starter tool for first-time business owners, but once your business is up and running, it’s time to set the foundation for sound financial reporting. There are many robust accounting programs that are just as easy to use as Excel once you get the hang of them. Accounting software can also consolidate your business finances, including invoicing, payroll and expenses.

Electronic statements are greatly assisting business owners in keeping track of transactions. Downloading your transactions and reconciling regularly is a great way t consolidate your process, eliminate paper and keep finances as well as tax preparation up to date. Not to mention, the benefit of accounting software are limitless! Accounting software can help cut down on data entry, link checking accounts and financial records to tax software, and save time and effort!

3. Hire an Accountant

Very few small business owners specialize in tax preparation, and even those who do should not be devoting their time to taxes. An experienced and reliable local CPA or accountant is one of the cornerstone team members of a successful company. Seeing as you don’t necessarily need to have your accountant on staff full time and can instead pay them solely for their services, there is no reason not to seek an expert to prepare your taxes and educate you on how best to align your business finances.

Tax time may not be the right time to do it yourself. Hiring an expert or tax advisor may even save you money in the long run. Plus, consider this: tax preparation fees are tax-deductible. Hire tax preparation services TODAY!

4.  Make Tax Planning an Ongoing Activity

After the April whirlwind, it’s tempting to remove yourself from tax discussions. Before you know it, another year has passed and you’re back in the same position. Tax planning for business is not a once-a-year rush job; it’s an integral part of making important decisions and establishing a financially viable company. All of the tips above are designed to help you bring tax planning into your business strategy and minimize your stress come tax season—a result every business owner can appreciate.

5. Know the Dates

The IRS provides a tax calendar for businesses and the self-employed. Use this tool to stay on top of to-dos such as filing W2s and W9s, making estimated payments and, of course, filing your return. Your tax rates can differ based on the details of your business; it’s best to map out the entire fiscal year in advance to be sure you don’t miss any important action items.

Bottom Line

Small business ownership is hard enough without having to stress about all this tax filing stuff. Do yourself a favor and break up the accounting throughout the year and let the software do most of the heavy lifting. Before you know it, tax season will be a breeze and you will have forgotten why it always used to stress you out. Hopefully, a lower tax bill will come your way as well.

Limitless Investment and Capital Small Business Tax Preparation Services

At Limitless Investment and Capital, your Tax Consultant in Denver analyzes your tax liability each quarter and builds a strategy to minimize how much you pay. Then we file the returns to keep your business compliant. Erase your tax frustrations and hire a tax preparation expert, TODAY!