If you own and run a small business, you have to deal with various tax obligations – the amount of tax you end up owing can be a lot more if you make a mistake or overlook something. Of course, you will need to file your taxes at the beginning of the year, as we all do, but the first few months of the year are also the ideal time to look closely at your tax deductions to make sure you are saving as much as possible and getting as big a refund as possible. The services of a professional tax accountant can help you to achieve your tax goals.
What Is a Small Business?
If you have a turnover each year of under $2 million, your company is defined as a small business, although there are plans in the works to raise that threshold to $10 million.
Taxes and Small Businesses
There are several so-called small business tax concessions that the government has instigated, to help small businesses and it’s worth knowing about these and taking advantage of them. And when tax time rolls around again, these tax tips can help to make the process less overwhelming and ensure you get the maximum refund.
Tips on How Small Business Can Minimise Tax
Make a list of tax-related things to do before the end of the year so you aren’t doing them all at the last minute. Make a point of researching all the deductions that you can claim, including any bad debts for that tax year.
Going paperless, keeping your personal and business finances separate and setting reminders for any important due dates can all help you to be better prepared for filing your taxes. You can access documents kept in a cloud bases storage system from anywhere whenever you need them.
Keep Accurate Records
You should keep thorough and accurate records of paperwork for five years; not only is it a tax requirement but of course it also makes your financial life easier. Employee records, bank and credit card statements, proof of asset purchase, expenses and sales receipts should all be filed systematically, either electronically or on paper. You never know when the IRS will ask to see any paperwork for verification purposes.
Plan For Next Year
It’s never too early to think ahead to next year, and a good tax accountant can help you to stay on top of new tax laws and reduce the amount of tax you pay next year. Every year seems to bring new rules that can potentially affect small business and how they claim exemptions and file taxes, and keeping on top of everything is a must.
If you would like to explore innovative and tested solutions for your small business, contact an experienced tax accountant today. Whether you are looking for strategies to save money during the year, or you have concerns about being compliant with the latest tax laws, an experienced accountant can help you and your small business, at tax time and all year round.