Running a small business is a tough job. Add in filing business taxes, and it can get a bit overwhelming. We’ve compiled a list of four fundamental tips to help ensure a smoother tax season for your business moving forward.
Table of Contents
1. Know What Forms Your Business Needs
Tax season can be much easier to navigate accurately when you identify the proper tax documents your business will need to fill out. Determining the type of forms your business requires will depend on the type of business you run.
- Find a comprehensive list of tax forms and helpful resources to guide your business
2. Consult with an Accountant
There are many moving parts involved with filing taxes. The chance of your business paying more than it should in taxes can be high.
For instance, your business could accidentally leave out some legitimate expenses when filing taxes. This could mean that your business could pay more than it should.
To avoid this possibility, and others like it, consider hiring a certified public accountant (CPA) to help your business file taxes as efficiently as possible.
The American Institute of Certified Public Accountants is a great place to search for high-quality CPAs.
3. Create a Checklist
The tax filing process will go much faster if your business has all the information it needs ready and on hand. We’ve created a checklist for your business to consult this tax season.
Business Tax Checklist:
- Income statement: If your business isn’t already, begin keeping records of all receipts and sales.
- List of expenses: This should include any money spent to support the company’s operations. Don’t forget additional costs such as advertising, transportation, airfare, or meals while traveling.
- Payroll documents: In addition to your staff, this should include payments made to contract workers and freelancers.
- Bank and credit card statements: This can help track money coming and going out of your business bank account.
- Asset purchases: Have receipts on hand if your business has bought new equipment, vehicles, computers, etc.
- Last year’s business tax return: This is a fantastic reference if you have it.
4. Use All the Resources Available
Small business owners have to wear many hats, one of which can be an accountant. To make that role easier, utilize every resource available.
The IRS has tons of resources available on its tax center page and can be used as an excellent source of information.
Additionally, small business tax software can automate many time-consuming accounting tasks.
Tax software is worth the investment, especially when you consider the time your business will save.
Automating these tasks also helps to eliminate the potential for human error.
An excellent record-keeping process is also essential. This will eliminate confusion and having to hunt down potentially lost documents and information.
If you’re a new business owner and you’re not exactly sure which accounting software is the best for your business, consulting an accounting professional could be a massive time and stress saver.
- You can also seek business advice from your accountant on improving bookkeeping records, your business’s financial plan, and how to better understand your business expenses.
In the end, tax season doesn’t have to be a daunting time for your small business, but if you make it the company norm to maintain clear and accurate financial data, utilize resources, and create a business tax checklist, filing business taxes will become much easier for your small business.