It’s no secret that Americans find taxes complicated. 56% don’t even know when the deadline is.
Still, with all of the laws that surround taxes, this is completely understandable — and it can get even more complex if you own a business.
Fortunately, there are a few things you can remember that will make staying top of your taxes a lot easier. Here are the small business tax tips you need to know.
1. Keep Records of Everything
The best tax advice you can get in any situation is to keep records of everything. That way, when it comes to filing taxes, you can pull up everything you need because you’ve been keeping track of it throughout the year.
2. Track Expenses
As a small business, you might end up owing a small fortune in taxes and may need some ways to offset that. Make sure you track and deduct every expense related to your business.
This includes supplies, travel expenses, food for business meetings, and more. Make sure you’re aware of what qualifies and keep all of the receipts.
3. Look at Tax Credits
Tax credits are another great way for small businesses to save on their taxes and many aren’t even aware that some of them exist. It’s crucial to look through the ones relevant to the year that you’re filing and make sure you claim all of them so you end up with a lower tax bill.
4. Pay Estimated Quarterly Taxes
If you choose to pay all of your taxes at the end of the year, you could owe more money due to fines for doing it. Paying quarterly, as expected, will not only keep you up to date, but will save you money.
5. Be Honest
It can be tempting to put in more expenses that may not be entirely relevant to business or claim a home office that’s actually just a spare bedroom you sometimes work in. However, the IRS will always find out, and you could be fined or worse.
That’s why it’s important to stay honest when filling out your tax forms. it doesn’t guarantee everything will go hassle-free but it means if the IRS comes knocking, you have the receipts to prove that everything you wrote down is true.
5. Use a Professional
Even if you’re confident in your own tax abilities, handing things off to a professional is a best idea. They can dedicate all of their attention to taxes while you concentrate on your business and they’ll make sure everything is accurate.
Click here for a great CPA.
Follow These Small Business Tax Tips
Although tax season is often a stressful time, there’s no reason it shouldn’t go smoothly if you prepare well and keep everything up to date. Following these small business tax tips will set you up for success.
For more and life business tips, check out the rest of our site.