If you own a small business, you may be wondering how to best prepare for tax season. There are many components that go into filing taxes for a business, and unless you are organized about it, you may make a serious mistake that can lead to penalties and fines. The last thing you want is to miss important documents that need to be filed and end up in trouble during an audit.
Here are a few ways for you to stay as prepared as possible for tax season as a small business.
1. Know Which Tax Forms Apply to Your Small Business
There are different types of taxes that small businesses may have to pay and it can be confusing and overwhelming to know which ones you are responsible for. To make things even harder, not all tax forms are due on the same day. That means you need to be incredibly organized to know which forms you need to fill out and on what day they must be submitted.
2. Save Receipts and Records of Tax-Deductible Expenses
Different kinds of business expenses can actually bring you tax relief, so it’s important to keep track of all those expenses throughout the year. When the time comes to file your taxes, you will then have all these tax-deductible expenses in one place, making it easier to submit them as well as making sure you don’t lose out on any.
3. Keep Track of Your Eligible Tax Credits
In addition to business expenses, there are other tax credits that could apply to your small business. For example, if you contribute to employee health insurance costs and you have below a certain number of employees, you could be eligible for a tax deduction. This is also true if you offer paid family leave, hire veterans, and other scenarios. A professional can help you identify all the tax benefits your company is eligible for so you can take advantage of those credits come tax season.
4. Work with a Professional
A professional can help your business organize tax materials and gather all information necessary to file correctly. It’s important to make sure you don’t make mistakes so you can avoid fines and penalties. Working with a professional also takes the pressure off of you so you can focus on actually running your business.
At DeSantis, Kiefer, Shall & Sarcone, our financial experts will work with you to come up with a plan so you can keep your tax information organized throughout the year. Our team can also help you set aside funds to pay any outstanding taxes you might owe after filing. With a plan in place, you’ll never be caught off guard and will remain in good standing with the IRS. Contact us so we can help take the stress off tax season!
