It’s that time of the year that every business owner dreads—tax season! No one wants to deal with the IRS, but to remain successful, you have to.
Before filing, it’s best to get as much tax advice as possible.
Getting professional advice before filing taxes is effective planning. Most times the end result is a reduced tax bill. Experts know the ends and outs of income tax, wealth tax, and capital gains.
They show you how to circumvent excessive tax burdens.
You also maximize your return, if at all possible. We’re currently enduring economic challenges due to the pandemic. Advice that helps you ease a tax headache for a possible return is a major plus.
Are you looking for ways to save when filing your business taxes? We’ve got you covered! Follow this essential tax advice guide for small business owners.
Best Tax Advice Ever? Find Out Upfront What Your Business Qualifies for
One of the biggest mistakes business owners make during tax season is not knowing where they stand. That means understanding what tax treatment they qualify for.
Small businesses have the right to deduct a certain percentage of business income from the taxes each year. The average is 20 percent unless you run a C corporation.
C corps and businesses who offer services make you ineligible for this deduction.
Some other important tax deductions include:
- Advertising and promotion
- Home office deduction
- Business meals
- Business Insurance
- Salaries and benefits
Find out where your business stands and get the most out of your taxes.
Know the Due Dates
Some businesses overlook the importance of having a sound accounting team. And yes, the size of the business has a lot to do with that decision.
The main reason behind having an accounting team is to keep up with important financial dates. The most important due date is when yearly taxes are due.
Tax season dates change often, especially this year due to the looming pandemic and economic stimulus. The normal due date falls in April but is subject to change at the discretion of the IRS.
Make sure you know the Federal tax due date before filing. Late tax returns are subject to fines and penalties by the IRS.
What Information Do You Need to File Your Business Tax Return?
When a regular taxpayer files a return, they need things like an online W2, 1099, and more. Your business also needs essential tax information before it files.
- Profit and loss spreadsheet
- Balance sheet
- Deductions sheet
- Proof of business assets (equipment, vehicles, property, etc)
Have all this stuff ready and available before you file to save time and money. Professional accountants charge extra to dig this stuff up on your behalf.
The best way to survive tax season is to be ready. Taking sound tax advice keeps you up-to-date and out of tax trouble.
Need more financial advice like this? Check out our business guide for the latest tips and successful business practices.