How any Small Business Can Handle Tax Season Like a Champ
Tuesday, March 18, 2014, 1:00 AM | Leave Comment
No one looks forward to tax season, and this time is even more stressful for small business owners. However, this time comes every year without fail, and it will come whether you are prepared for it or not. If tax season is a trying time for your business, there are a few tactics you can use to face the terrors of taxes head-on and rise victorious over the season.
Read ahead for some ideas on how your small business can handle this tax season like a champion.
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List Your Issues
Before you can tackle your tax problems, you need to understand what your problems actually are. Analyze your tax methods in order to figure out why it has been difficult for your business in the past.
Is one person or department in charge of doing the taxes? Is it difficult to find all of the documents that you need? Does filing taxes get put off until April of every year? Do you find it hard to understand the different tax forms?
Make a list of the problems that you discover, and engage your team’s help to find solutions to these issues. Once you figure out the root of your issues, it will be easier to find resources to help you get things done.
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Set Up an Organizational System
Many businesses struggle with keeping their paperwork organized during tax season, and even if you aren’t doing your own taxes, this will create problems.
No matter your methods for getting taxes done, you need the correct forms in order to complete the process.
If you wait until it is time to complete your taxes to organize your paperwork, it is already too late.
Take some time to develop an organizational system for the necessary information that you need at tax time.
Some businesses use traditional paper filing systems, while others prefer to store paperwork electronically.
Find the way that works for your business, and be consistent in your organization methods so that you aren’t scrambling to get organized every year.
Typically, electronic records work best, however, you’ll need to be able to accurately compile charges across different payment methods if your company accepts cash, checks, as well as credit cards.
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Maximize Your Deductions
If you are tired of being shocked by a high tax bill each year, make sure that you are doing everything possible to maximize your deductions.
There are plenty of deductions and credits that can be claimed by small businesses, and some business owners miss out on deductions that could greatly decrease their tax bills.
For instance, you can deduct telephone charges, the cost of travel and meals, software and subscriptions and mileage.
Make sure that you keep written records of all expenses to justify your deductions.
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Seek Professional Help
If you feel like you do not have a handle on tax preparation, consider seeking professional help. You will have to pay to use the services of an accountant, but this decision could actually end up saving you money on your taxes.
For the best results, work with an accountant who is experienced and knowledgeable regarding small business tax issues.
In our technologically advanced world today, you can easily seek the help of technology in order to successfully complete your taxes, as well as save yourself money.
Not all companies can afford to hire an accountant, but luckily there are plenty of tax software resources resources these days that are user-friendly and easy to figure out.
If you’re a tech-savvy business owner, consider using tax programs to complete the process on your own instead of spending money on an accountant.
If the thought of taxes causes you to break into a frantic sweat, know that there’s no need to stress about your small business taxes ever again.
Once you know what your issues are, get organized, maximize your deductions and seek professional help, you’ll have the power to become a champion over tax day.
Perhaps the most important of these suggestions is organization. Taking time to get organized early will make tax season a breeze.
Having the correct documentation, knowing how to access your documents, and having a better understanding of your company expenses will really help when tax season rolls around.
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This article was written by Dixie Somers, a freelance writer who loves to write for business, finance, women’s interests, or technology. Dixie lives in Arizona with her husband and three beautiful daughters who are the inspiration for her writing.
If you need a little extra help with your taxes, you can use programs like Quickbooks merchant processing that will provide you with all the relevant information you need, and all you need to do is enter the data.
