If there is one season during the year that most people dread, it is probably tax season. Small business owners in particular have a lot of information to keep together, and eventually, it can become too hard to follow. Fortunately, there are ways you can make taxes simpler for your company, allowing you to get things done faster than ever before.
Keep Detailed Records
For starters, you are going to want to keep records for everything. While you may be keeping the information about the employee payroll, rent, and charitable donations fairly well on your own, you can detail this information even easier if you choose to use a digital program. This way you can have the records you want and still put your focus on the less monotonous business dealings.
The IRS may ask your company for an audit every once in a while, and if they do you’ll be glad you have everything laid out so simply. You won’t have to scramble to find all the paperwork since all the information can be easily accessible through your computer. It may be smart to use a cloud service to save the document as well.
Are you still doing your taxes by mail? If so, you are giving yourself way more work than is necessary. There are many resources online that you can use to file electronically, which doesn’t require extra fees when filing federal taxes. Many people prefer to use something like TurboTax because of its streamlined nature.
As a small business owner, you’ll have to fill out additional paperwork on top of your personal taxes. For instance, the IRS requires businesses to use EROs to file their taxes electronically. Make sure that you don’t forget this other paperwork, otherwise, you can get in trouble with the government.
Hire a Third Party
Lastly, you may have the records laid out and TurboTax ready and set, but you still might not have time to fill everything out. In this case, it can be wise to hire a trusted third party. Tax preparers will ask for your information and fill everything out on your behalf. It can cost a pretty penny, but it might be worth it to get out of the job. Don’t just hire any person who claims to be a tax preparer. Make sure you search for reviews to make sure they are legitimate. Keep your info safe.
At the end of the day, you should do what works for your business. Some owners can take on taxes themselves, others don’t have time. Both are acceptable and offer their own opportunities.
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