When you first decided you were going to start your business, you probably had visions of your revolutionary products, your swanky new office, and the amazing leaps in growth you’d be able to achieve. What you probably didn’t think so much about was the drier parts of running a business, like staying on top of taxes. Though you may want to put all of this off, you need to start thinking about your taxes long before April. Here’s some advice to simplify the whole issue.
First of all, make sure you’re using all the preparation tools you have at your disposal. There are many resources available which can help you find out which information and records you need to gather, and explain various tax guidelines to you. By getting a simple tax organizer or worksheet, you’ll make organizing and paying your taxes so much easier. There are many different accounting firms which will offer these kinds of forms to their clients, and walk them through the different terms and nuances. Alternatively, if you’re trying to save money, you can download them for free from a few different websites. It won’t take you long to find some handy tax calculator apps as well. All of this is before we get into professional tax software and small business applications. There are countless tools out there which will simplify your taxes for you. You may not need to suffer all those headaches you’ve been anticipating!
You can make dealing with your business taxes so much easier by being aware of some of the most common mistakes business owners make when filing their taxes. One of the main things you should never do leave all your responsibility to a tax professional. You might have gone through the founding stages of your business thinking that this is what they’re there for. Yes, these individuals can be a big help. However, that’s no excuse to pass the buck completely. As the business owner, you’ll ultimately be responsible for all the information that’s presented on your tax return. When it’s being processed, make sure you’re reviewing your tax return regularly, and asking any questions you have. I’m sure you don’t want to have to pay for an accountant and an MCC4Tax attorney.
Finally, make yourself a checklist of everything you need to do before filing your returns. The smallest of details can cost you a massive amount of time and money, and drop you in all kinds of stressful legal troubles. You may not think that you’re going to miss out on anything, but bringing a checklist into the mix will make sure. The most important steps are filing your payroll forms, sending out 1099s to contractors, getting your income and expense records together, and organizing all your miscellaneous files. Set yourself a reward at the end of it all, and check things methodically off your list. You’ll give yourself a little more peace of mind, and may dodge some serious legal ditches!
Hopefully this post has given you a clearer picture of your small business’s tax.