Filing Business Taxes: 7 Key Tax Filing Tips for Small Business Owners
So, you’re getting ready to file your small business taxes for the year and you want to make sure you do everything the right way.
Perhaps you are filing business taxes for the very first time and are a bit overwhelmed by the process. Or maybe your business has been around for a while, but you had a good year last year and are a bit nervous about tax season.
Regardless of how big your small business is, or how long it’s been around, filing your taxes can be quite stressful. But if you know a few key tips and tricks, you can get the job done much faster, which of course is a good thing. It’s never too late to start planning for your business’s tax outlook.
So when should you start filing taxes? And do you need the help of an expert to do the job the right way? We’ve got the answers to questions like these, and more, in this article.
Now then, let’s get started!
1. Get Organized Beforehand
Before you start working on your taxes, take a second to get your records sorted and organized. Making folders, labeling everything, and creating a sorting system will help you find things quicker, which can help you limit frustrations.
A pro tip? Keep your system going throughout the year. That way you won’t have a ton of catching up to do once tax season finally arrives.
2. Don’t Mix Business With Personal
If you’re a small business owner, you may be tempted to try to do both your business and personal taxes all at once. This is a bad idea, for a variety of reasons, and should be avoided completely.
Because your business taxes are going to require a bit more work, do them first. Then you can take care of your personal taxes, once all of the hard work is done.
3. Let a Professional Help You
If you’ve got some accounting experience, or have done your small business taxes before, then you know how difficult the process can be. That’s why, if you’re not an expert, it’s a good idea to let a professional help you do things the right way.
Of course, you’re going to have to spend a few extra bucks to get this done. With that being said, a professional can help you find a few small business tax cuts that you might not know about, which means they’ll most likely pay for themselves.
Another huge benefit of having an expert on your team is that you’ll have someone who is familiar with your business and its tax records. That means that, if you stick with the same person over the course of a few years, tax season will be much easier going forward.
4. Don’t Wait Until the Last Minute
Did you know that 75% of people are procrastinators? When it comes to doing your taxes, waiting until the last minute is without a doubt the worst thing that you can do.
So, as soon as you can, it’s a good idea to start the filing process. The faster you get started, the faster you can stop worrying about them for the year.
Also, starting early will give you the luxury of taking your time throughout the process, which can prevent you from getting overwhelmed.
5. Don’t Do Everything at Once
To piggyback off of that last point, one of the benefits of filing taxes early is that you don’t have to try and do everything at once. Not being in a rush allows you to take your time, do certain tasks and then take breaks before starting new ones.
If you do try to do everything at once, you’re most likely going to make a mistake. Of course, the bigger the mistake, the more money you can cost yourself, which isn’t what you want.
6. Take Lots of Breaks
Again, it’s very easy to get burnt out when filing your taxes. But if you file early enough, you’ll have the ability to take lots of breaks throughout the process, which can be quite helpful.
If you can, it’s not a bad idea to take a vacation during the process. Something as simple as a weekend getaway can help keep you relax and relieve your stress.
7. Let Technology Help You Out
The days of needing to do everything yourself are very much over. And if you have a smartphone, there are tons of free apps out there that can handle a lot of the heavy lifting for you.
When it comes to tracking records and staying organized, apps like Evernote can help you keep everything neat and easy to find. Using these apps, as well as leaning on a tax professional, can help you get the job done quicker and easier.
Tips for Filing Business Taxes
Well, there you have it! Those are a few basic tips and tricks for filing business taxes! So, using these ideas, you should be able to make filing your taxes this year that much easier!
Remember, being organized is key. So, if you’ve done a poor job keeping records this year, take a few weeks to get everything together before you bring your accountant in.
Speaking of an accountant, if you’ve never used one before, consider using one this year. You might be surprised how much money you can save by doing so, making it more than worth the money it costs to hire one.
As we start a new year, start keeping and organizing your records better now. Use smart apps and take some time each week to stay organized. Doing so will make next year’s tax season that much better.
Looking for more ways you can take your small business to the next level? Check out our blog!