Tax season is right around the corner and quickly approaching. You don’t want to wait until the last minute to file your business taxes. In fact, it’s better to plan ahead and prepare so that you know what to expect financially and are able to get your taxes done faster. Here are four great tax preparation tips for small businesses!
Hire the Right Accountant
The first thing to remember is that there is nothing wrong with seeking professional help for your business taxes.
The best way to prepare for tax season is to invest in an accountant before tax season so that they can assist you throughout the entire year.
The right accountant will do more than just your taxes, instead of working with you to track financial transactions, profits, etc.
A good accountant helps you properly maintain your finances the entire time so that when it’s time for tax season, everything is already organized and in place.
Separate Business & Personal Accounts
When kicking off a small business, it may seem easier to just keep those finances in your personal account.
However, even if you reported all business expenses correctly, the IRS now has access to your personal account.
They can look into your personal account because of the combined money and this could end up impacting your tax information.
Keep Financial Records
It is so important to keep track of all your business expenses, both internal and external, as you go along. If you are unsure of the proper way to keep track of your finances, a professional finance service can help.
Bookkeeping has been made easier due to digital software, but a professional can ensure that all expenses are accounted for and also analyze financial information to help improve your small business and keep it growing.
Claim all Income Reported to the IRS
Trying to get over on the IRS is never a good idea because they most likely have access to the information that you are trying to withhold.
The IRS gets a copy of the same 1099-MISC forms that you receive, so they know exactly how much income your business has made within the year.
They compare the amount you made to the amount you reported and if they don’t match, it’s a red flag for the IRS.
Contact PL Consulting Today to Prepare for Tax Season!
At PL Consulting, we consider our clients part of our team. We provide full financial management services including bookkeeping, accounting, payroll, tax preparation, budgeting, and more.
Serving the Baltimore area for several years, we are dedicated to providing customized service to fit each and every one of our client’s unique needs.
To book PL Consulting today or get more information, contact us at (410)-764-3731 or at https://www.plcfo.com/contact/