Tax season is nearing. For many small businesses, that means spending the coming weeks sorting through accounts and records in an effort to piece together a picture of their business’s finances over the past year. We know business owners are bombarded with tax tips and information during this season, and we want to help. So, Balboa Capital created a blog post with tax tips for small businesses. We think you will find them to be a huge help prior to preparing your company’s tax return.
Prepare as you go.
Just being prepared for tax season can streamline the entire process, making it significantly less stressful for the business owner. Waiting until the last second to tally expenses, revenues and other financial records will only contribute to the overwhelming and confusing nature of business taxes.
Start by ensuring that you and your team are keeping track of business expenses throughout the year by entering them into your accounting software or other accounting system immediately following the event. You can save money by financing accounting software for your business.
Learn about tax deductions.
There are several tax deductions that small business owners should be taking advantage of. One of the most important tax codes for small businesses to be familiar with is the Section 179 tax deduction.
This tax code allows businesses to deduct the cost of qualifying equipment that was purchased or financed and put into use in the same calendar year. The IRS website is a great resource to familiarize yourself with tax codes and find tax tips that apply to your business.
Hire a professional.
Spending the extra coin to hire an accountant can be well worth it for small businesses. Deductions and credits change every year, so working with a professional that keeps up to date on these variances can maximize your deductions and minimize any human error associated with doing your own taxes.
This also frees up your time as the business owner – rather than forcing you to hunker down and focus on taxes. Not only are you paying for an accurate filing of business taxes, but you’re also paying for peace of mind and more free time.