As a small business owner, you have a lot on your plate when it comes to managing the finances of your business. In addition to small business bookkeeping, you might also need to understand how to run payroll if you have employees. There’s also the aspect of small business taxes, which can be quite complex for the average business owner.
To make the process of calculating your small business taxes easier, follow these tax tips for small businesses:
- Keep meticulous records
As a small business owner, it is important to keep meticulous records of business expenses and receipts. This paperwork is essential come tax time, and it can also be helpful in the event of an audit. QuickBooks Online is a great tool for tracking expenses and keeping organized records. When deducting business expenses on your taxes, be sure to keep good records and receipts to back up your deductions.
- Understand which deductions and credits you’re entitled to
As a small business owner, it’s important to understand which deductions and credits you’re entitled to in order to save money on your taxes. There are a variety of deductions and credits available, so it’s important to do your research to see which ones you qualify for. Some common deductions and credits include those for business expenses, home office expenses, and employee benefits. By taking advantage of all the deductions and credits you’re entitled to, you can save a significant amount of money on your taxes.
- Guard against scams
IRS scams come in many forms, from criminals impersonating the IRS to taxpayers trying to avoid payment. Every year, the IRS releases a “Dirty Dozen” list of the most common scams, tricks and schemes that criminals use to try to defraud taxpayers. As a taxpayer, you need to be on the lookout for these scams so you don’t become a victim. The IRS will never call you out of the blue and demand that you pay a penalty or fee, so if you get a call like this, it’s a scam. Don’t let criminals take advantage of you – guard against scams by being informed and alert.
- Hire a Professional
When it comes to keeping your finances in order, it pays to hire a professional. A bookkeeper can help you stay organized and ensure that all your financial records are in order, while a tax professional can help you maximize your tax deductions and ensure that you’re complying with all the relevant tax laws. In short, hiring a professional can save you a lot of time and money in the long run.
Plan Your Small Business Taxes with Citrine Accounting & Taxes
If you’re looking for help with your small business finances, Citrine Accounting & Taxes is the perfect place to contact. We can provide you with the assistance you need to get your finances in order. Whether you’re just starting out or you’ve been in business for a while, we can help you get a handle on your finances and keep them organized. Contact us today to get started!
This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. Citrine Accounting & Taxes assumes no liability for actions taken in reliance upon the information contained herein.