As a small business, you want to make sure you’re doing everything right. This includes a long list of tasks throughout the year. Depending on how you’ve run your business and kept track of all of your transactions, taxes are one part of the process that may not be easy. Here are 5 top tips for small businesses going into tax season.
Don’t be afraid to ask for help. If you’re trying to figure out what needs to be done when and you don’t know how to do it, get some help. This could mean that you’re meeting with a CPA or using an online program. Taxes are important so it’s best that you get the guidance if you need it. Then, you will be able to get a maximum return and you will have the peace of mind that you did everything right.
Deduct all expenses, including your home office. Sometimes, small business owners aren’t aware that they can deduct the portion of their home they are using for their business. If you’re working from home, you can include utilities and mortgage payments. First, you will need to calculate the percentage of your home being used for work purposes.
Keep your records up to date. You should save all of the records of any transactions you have made in the past year. This includes business expenses too. You may pay extra if you don’t have everything organized. This should be worked on throughout the year so you’re ready to go when tax season rolls around.
Deduct your technology purchases. With Section 179 of the tax code, you can deduct some of your electronic purchases. This may be anything from printers to laptops. It can even cover company cars in some cases. Be sure to look into all of the details as it changes from year to year. There are some specifics that may not apply to your particular purchase either.
Think about restructuring your business. You may have switched gears at some point since you started your business. Restructuring your business can give you different tax policies and deductions too. This can then affect your goals and finances for years going forward.
Figuring out how to pay taxes as a small business doesn’t have to be a huge challenge. Spend some time and find out what exactly needs to happen to make it work. Don’t be afraid to ask for help along the way!