As a small business owner, what should you focus on to ensure you always have a smooth and successful tax season?
While you may have started 2018 with great intentions to keep all your files and data as organized as possible, did you find yourself struggling to find important documents and receipts when you are preparing your tax returns?
More likely than not, one of your biggest challenges was probably your accounts receivable. Did you know that over 70 percent of small business owners or managers make the decision to outsource their tax planning and preparation? However, this does not mean there will not be any work left for you to do. There are plenty of things you can do as a small business owner to prepare throughout the entire year.
You can be fully prepared when the 2019 tax season arrives if you keep the following tips in mind.
Do Not Lose Track Of Your Expenses
We know this may sound obvious, but sometimes it can be difficult to keep track of every single business expense. As a business expense pops up, you should make sure you immediately enter the expense, regardless of what the expense may be. It may also be a good idea to include a few sentences that will be used as a notation.
Use The Tax Incentive Programs
Did your business introduce a new service, process, or product this year? If it did, did you know you may qualify for tax credits? If you have employees who have been engaged in research and development for a certain period of time, you could qualify for the R&D tax credit. We encourage you to carefully check all the tax incentive programs in the state.
Team Up With A Professional
It can be a good decision to use your own software program, but this may not be something you will want to heavily depend on. A professional with expertise in working with clients who are in your position will ensure you are getting the most out of deductions, incentives, etc. Working with a professional will also ensure you are remaining compliant with all the rules and regulations. You will also feel comfortable knowing your taxes will be prepared the right way and they will be prepared on time.
When a tax professional is part of your business team for the entire year, the professional will have a better understanding of what strategies need to be introduced and implemented. It is important to plan ahead so you will not face any penalties and so you can avoid paying more in taxes than you should pay. If you want to get a head start on the next tax season, now is a great time to think about your tax planning strategies.
For more information about tax planning and tax strategies, please do not hesitate to contact Roberts Tax Advisory today.