Simplifying Tax Planning For Small Businesses
April 10, 2019
Taxes are a hassle no matter how you tackle them, but there are ways of simplifying the whole process by planning in advance to help minimize your stress levels when your taxes are due:
Don’t leave anything until the last minute:
This may sound like common sense to most of us, but believe it or not, every year thousands if taxpayers leave their filing right until the last minute, many of whom go on to face fines for incorrect or late payments. Even if you use the services of an accountant, they will require information and data from you well in advance of the tax due date, and in fact, throughout the entire financial year. So, stay in touch with your accountant and be sure to help them with their job as much as possible, usually by ensuring that they have access to all the receipts, invoices and other paperwork that they may need.
Keep all expense related receipts and be as organized with them as possible:
Organizing receipts for occasions such as business lunches and travel related expenses and keeping them safe until your accountant needs them, can help save a whole lot of time when it comes to filing your taxes. Even if you don’t think that something you paid money for can be considered a valid expense that may reduce your taxes, let your accountant decide. All payments that have a clear paper trail can be handed over to your accountant for them to figure out which ones can be considered for deductions.
Hire help from the right source:
If you don’t already have an accountant working for you, then it would be wise to source one that you can develop a good working relationship with, especially if you have a small business or your tax circumstances are complex. Try to locate an accountant who has experience of working in your industry, whether it be construction, manufacturing or medical services, and if you can get a personal recommendation from a friend, colleague or family member, so much the better. Going it alone when it comes to your taxes is rarely fruitful, but with an accountant’s help, you can say goodbye to penalties and problems with the IRS and be confident that you are being represented as accurately as possible. Taxes also take up a lot of time and mental energy and running a small business can be stressful enough without the added pressure of taxes. Using an accountant will free up more of your time and enable you to get on with other matters that may benefit your business.
Your taxes may be complex, but with the help of a professional, qualified accountant, those complexities shouldn’t be your concern, and you’ll find that having someone take over your filing for you, can lift a great weight from your shoulders. Research local accountants in your area, and wherever possible, get personal recommendations to help you choose the right accountant for you and your small business.