Taxes. It’s not the time of year small business owners look forward to. It’s complicated. It’s time consuming. And for some, it’s expensive. But, it doesn't mean taxes need to be overwhelming.
Here are 10 tips for small businesses on how to survive tax time.
1. Keep Good Records
This first simple tip can save you a lot of time and headache at tax time. Proper record-keeping year-round is essential to back-up deduction claims, should there be an audit. And being organized means less time filling out tax forms, too. Tweet this tax tip!
2. Understand Available Deductions
Do your research, or talk with a tax pro, at least annually about deductions available to your business. This could include newer deductions available under the Small Business Jobs Act. Tweet this tax tip!
3. Mark Your Calendar for Your Filing Frequencies
As you plan for 2015, update the filing frequencies on your tax calendars. Deadlines can change. This way, you'll be on top of your deadlines for filing your sales and use tax returns. Tweet this tax tip!
4. Don’t Forget About Obamacare Tax Credits
As a small business owner you’re likely eligible for Obamacare tax credits on individual or small group health insurance. These new tax credits can add up to significant savings. Tweet this tax tip!
5. Avoid Common Mistakes
According to the Small Business Administration (SBA), common potential red flags include errors with employee classification, home office deductions, and large sum miscellaneous deductions. Tweet this tax tip!
6. Plan For Taxes All Year
It’s easy to deal with taxes once a year, but this can be a mistake. Make tax a year-round activity to properly plan for, and take advantage of, cost-saving opportunities. Tweet this tax tip!
7. Hire a Pro
Whether you’re just starting out or you’re an old pro by now, hire a knowledgeable tax professional, attorney, or accountant to help you navigate tax laws. A professional can identify tax breaks and deductions you might otherwise miss. Tweet this tax tip!
8. Know Your Tax Bracket
Knowing your tax bracket can help you strategize for growth and plan for taxes. Tweet this tip!
9. Automate Your Taxes
Take advantage of newer cloud-based software products that help small businesses track and manage taxes more efficiently. Tweet this tax tip!
10. Separate Your Business and Personal Expenses
Lastly, have separate bank and credit card accounts for your business and personal use. And as noted previously, be diligent about keeping good records. Tweet this tax tip!
There's no need to feel overwhelmed at tax time. As you plan for taxes, follow these ten tips to sort through your requirements, avoid mistakes, get organized, and understand small business tax law.
What small business tax tips would you add to the list? Comment below.