Implementing these tax tips for small businesses can help lessen the stress of tax season.
It’s the least wonderful time of year. That’s right— tax season is once again upon us. Taxes may be everyone’s least favorite responsibility, but they are one of the most important. Not to mention that completing your small business’ taxes incorrectly can have dire consequences.
Increase your confidence and set yourself up for success this tax season by following these tax tips for small businesses.
- Separate your business expenses from personal expenses.
One of the most important things you can do as soon as you begin a small business is immediately divided your business and personal expenses and have separate accounts for each. - Keep track of everything.
Proper bookkeeping is essential to every small business. Maintaining accurate financial records throughout the year and keeping copies of your receipts and transactions will help you prepare for tax season more easily. - Claim all of your reported income.
Out of all the tax tips for small businesses, this one might seem like a no-brainer, but it’s still essential. The IRS receives copies of your 1099-MISC forms and will use them to verify that you have correctly reported your income. It’s never a good idea to try to evade paying taxes, especially by not claiming your income. - Research tax deductions and credits.
From vehicle to credits for retirement plans, there are various tax deductions and credits that can help you lower your tax bill. It’s better to understand your potential tax deductions and credits before you begin to file your taxes to maximize your return. - Seek the help of a professional.
Even with doing research, taxes are still complicated. Hiring a professional tax preparer or accountant can help ensure your taxes are completed correctly. A professional employer organization (PEO) can also help you manage your small business’ payroll and payroll taxes throughout the year.
Need more help than these tax tips for small businesses?
As a small business owner, taxes are just one of the many time-consuming responsibilities on your plate. While a professional tax preparer or accountant can help you manage your small business’ finances, a professional employer organization (PEO) can assist with other personnel administration requirements. From payroll processing to workers’ compensation, a PEO can help you better manage your small business.
As a trusted PEO with decades of experience, Convergence Employee Leasing can help your small business thrive. By outsourcing your managerial burdens to our team, you can redirect your time and resources back to running and growing your businesses. Contact us today to see how we can be of assistance.
