If you're running a small business, you might stress out when tax time rolls around. If you've had problems with the Internal Revenue Service before, you know how serious the situation can get. It's important to prepare your taxes correctly and file them in a timely manner to avoid any issues that could cost you even more money:
Start Organizing Those Receipts
As someone who runs a small business, your receipts provide details on how much you're earning. If you're not keeping them organized, you might forget to include certain amounts that you earned during the year, which could cause you to get into trouble if you were audited. If you normally shove receipts in different spots and lose track of them, start using a filing system.
Place the receipts for your business in different marked folders. For example, if you spend money on advertisements and other marketing services, you'd put those receipts in a folder made specifically for marketing. If you receive receipts via email, make sure you're printing them out and putting them in their designated folders. Keeping your receipts organized will be helpful when it's officially time to start filing.
Make a List of Deductions You Can Use
Business owners often owe money to the IRS after they've completed their taxes. However, you might be able to drastically reduce the amount you owe or even break even by making sure to use all the deductions that apply to you and your situation.
Start making a list of different deductions that apply to your situation before the tax season starts. Some of the deductions that many small business owners are often eligible for include numerous business expenses, such as the cost of the internet bill and the cost of any materials that were purchased because of the business. If you've got receipts and proof of these expenses, you might be able to use them as deductions.
Let a Tax Professional Help You Out
When you're not employed by someone else, the filing process is slightly different. If you want to avoid making costly mistakes, let a tax professional look through all of your financial information and help you complete all the necessary tax forms. Some professionals offer audit protection, which means they'll be there to help you out if you're randomly selected for an audit by the IRS.
Tax time shouldn't have to be a stressful time for you. If you're looking to get through the season with the least bit of stress possible, keep receipts organized, figure out what types of deductions you can use when filing, and get help from a pro.
Contact a company like Jeffrey Beebe CPA for more information and assistance.Share
13 September 2017
As I see it, one problem with most budgeting programs is that they don't account for the "real life" factor. Anyone can tell you not to spend anything and to save everything, but when it comes to feeding your kids or dealing with a medical emergency, most budgets get thrown out the window. I realized that this was a problem, so I decided to start focusing on budgeting for real life. I decided to forget everything that I knew about budgeting and started working with a clean slate. This blog is all about budgeting for real life and knowing how to spend your money the smart way.