5 Tips to Prepare Your Business for Tax Season

For many businesses, tax season can be overwhelming and stressful. Here are five tips to help prepare your business for this year’s tax season.

1. Hire an accountant.

Many small businesses choose to do their taxes on their own. However, it is recommended that you look into hiring an accountant – even just to help you get started and organized. Although it will cost you some money, hiring an accountant can help ease the stress and make sure that you are filing everything correctly. It also enables you to focus on what you’re good at – running your business.

2. Fill out the forms you need.

There are several forms you will need to fill out to file your taxes. Different forms are needed depending on the structure of your business. Visit the IRS website to help you find the ones you need. (Your accountant can also help you with this.)

3. Deductions.

There are several deductions you can make as a business owner including things such as your home office, travel expenses, office supplies, equipment and employee reimbursements. The IRS defines anything that is “necessary and ordinary” as a deductible expense.  Chances are if you needed it for business, you can deduct it from your taxes. If you are thinking about including something in your deductions but aren’t sure, it is always a good idea to check with your accountant first.

4. Do them early.

Not many business owners look forward to tax season, and that could be why many procrastinate when it comes filing them. Instead of putting your taxes off until the last minute, it is a good idea to do them a few months ahead. This way, if there are any problems that arise, you still have sufficient time to refile and meet the April 15th tax day deadline.

5. Affordable Care Act

The Affordable Care Act is a resource that covers tax provisions, benefits and responsibilities for employers. Visit the IRS website for detailed information.

It is easiest to prepare for tax season if you have done the work and preparation all year long. Having a log of income and expenses, keeping your records up to date and staying organized  are just a few things that you can do throughout the year to make tax season not so stressful.