Small Business and Taxes
April 04, 2017
April 15 is right around the corner, and many small business owners may worry they have too much on their plates to get their taxes filed on time.
If your recordkeeping has been so-so this year, the task may seem daunting. You may want to hide your head in the sand and ignore that approaching deadline. But never fear! Here are some tips that can help you make that origination process more manageable:
Keep Track of Your Expenses: The foundation of every small business needs to be recordkeeping! It’s not sexy, but it’s important. Recordkeeping helps monitor your business growth, track taxable business deductions, and makes your business ready come tax time.
From the very beginning, your small business will need an organization system for receipts and important records. Whether it’s just a simple Filofax folder or using an online service like ShoeBoxed.com, getting those records in order now will save you time and money in the future.
What Small Business Expenses Are Deductible? You might not realize what all is considered tax deductible! For a complete list, check out the Credits & Deductions for Businesses page from the IRS.
Always Keep Business & Personal Finances Separate: Mixing business and personal funds is a common mistake for many first-time small business owners. It is important to keep separate accounts, and it will make things a lot easier when it comes to tax time.
When in Doubt, Ask the IRS: You can find the answers to most small business tax questions on the IRS website. It is open 24 hours a day and is there to help you with videos and straightforward information. The IRS Video Portal has a section dedicated to small businesses. This video library includes topics such as Business Expenses, Business Income, and Small Business Taxes.
Never Cut Costs on Your Tax Preparer: You can’t do everything yourself! If you don’t feel comfortable using a tax preparation software, hire a Certified CPA and make sure the CPA is one you've researched and has multiple recommendations. Yes, it will cost you money, but in the long run, a trained and reliable CPA is worth the price!
Small Business Specialist