There are several things business owners should know when it comes to tax planning. Knowing these tricks will help you save time and money. Here are some tips to make filing your business taxes a little easier!
Keep Personal and Business Records Separate
Not separating business finances and personal finances creates confusion and mistakes at tax time. It is important to keep them separate to avoid unnecessary penalties and audits. Businesses can avoid this by having separate accounts and separate credit cards that are only used for the business.
Keep Track of Everything
The IRS allows many deductions! Vehicle expenses for business-related trips can be a deduction if you keep track of your mileage. Business meals can also be a deductible expense if they are not considered extravagant, but you must keep track of receipts, who was in attendance and the purpose of the meeting. Talk to a tax professional to find more information about deductible expenses!
Create a Tax Paying Plan
The better prepared you are to pay your taxes the less stressful paying your taxes will be. You can arrange a way to set aside money monthly to distribute the tax burden throughout the year. This will help you avoid finding the large amount of cash in April.
Be Organized
Technology is making it easier and easier to record your business financials. Filing receipts and other expense documents together, keeps your expenses together so it makes it simple to find and calculate during tax season. In addition to your own tax expenses, businesses need to keep record of sales tax. Many Point-of-Sale devices have tax apps to make sales tax compliance simple. The apps automatically set aside sales tax using the sales data.
