As a small business owner, filing your taxes can be a complicated and stressful process if you are not organized. But it does not have to be that way.
Here are five great tips to make filing easier.
1. Be Organized All Year Round
If you try to gather all relevant information for your tax return over a weekend shortly before the tax deadline is due, it will not only be a stressful experience. It could also mean your tax return is incomplete. In turn, that could cause serious problems.
So, rather than trying to cram everything in at the last minute, stay organized all year round.
Keep a separate file for your tax information and make sure all of your income and expenses are recorded in that file throughout the year.
That means, at the end of the tax year, you will have accurate records that are easily accessible, and filing your tax return will be much easier.
2. Use an Employer Payroll Tax Calculator
As you should know, payroll taxes are paid by an employer on behalf of his or her employees. Payroll taxes are levied by federal, state, and local governments. The specific amount you need to pay is based on a percentage of the employees’ salaries that is paid to the IRS.
To quickly estimate the deductions and withholdings of your employer payroll taxes, you should take advantage of an employer payroll tax calculator.
With just one tool, you can make your tax estimations quick, simple, and accurate to complete.
3. Record Your Business Expenses Throughout the Year
Detailing your expenses is an important part of an accurate tax return, so you need to ensure you correctly track your business expenses throughout the year to make filing your tax return easier and quicker.
You should always keep accurate, detailed, and up-to-date records of your business transactions. You can then ensure you get accurate credits and deductions for your qualifying business expenses and do not miss out on any tax deductions that are available to you.
Common things you can deduct include the cost of legal expenses, travel for business purposes, and home office expenses.
4. Stay in the Loop About Current Business Tax Information
It is a good idea to subscribe to the IRS’s Tax Tips, which enable you to get informative emails about things like tax law changes. Alternatively, make sure you regularly check the IRS’s website to find out about any changes and updates.
By doing so, you can ensure your knowledge about current business taxes is up-to-date. In turn, you can better ensure your tax return is filed accurately and you can claim for everything you are entitled to.
Also, by subscribing to the IRS’s email service, you can receive further tips on completing your tax return throughout the year to make the process simpler and more accurate when it comes time to complete your taxes.
5. Hire a Professional Tax Preparer
Lastly, you should consider hiring a professional to help you with filing your taxes.
You could hire a Certified Public Accountant because he or she will be able to help you with many aspects of your business, not just your taxes. Alternatively, consider hiring a professional tax preparer.
By hiring a tax preparer ahead of time, you can ensure there is no rush and no last-minute problems are encountered. Of course, having a professional to help you with your taxes also ensures everything is filed correctly.
At the end of the day, the more organized you are with your small business taxes, the easier it will be to complete your tax return. Hiring a professional accountant or tax preparer can help to ensure you stay organized.