A new year has arrived, and while people around the country are making resolutions and recovering from a busy holiday season, many small business owners are plagued with panic. Yes, tax time has arrived.
The type of business that you operate will determine exactly when your taxes are due, but it’s never too early to prepare. It is tempting to wait until the last minute to file your tax return, but that might not be the wisest idea. Preparing now and filing early can help you ease your anxiety and start the year off right.
Most small business owners would agree that filing taxes is not the most fun part of the job. When it comes to taxes, procrastination is not the answer. Getting organized at the beginning of the year will save you both time and stress. Filing early also has financial benefits.
Depending on the size and type of business you manage, you might owe taxes or have a refund coming your way. Knowing what refund amount to expect will help you plan ahead. Another benefit to filing early when you expect a refund is an earlier receipt date. The earlier your file, the earlier your refund will be received.
If you owe, filing early will give you the opportunity to make payment arrangements and develop a spending plan that incorporates your upcoming tax bill. It makes sound business sense to determine how much you’ll owe before making any significant spending decisions. You’ll also be ready to manage your tax debt if you face it, head-on.
There are several things that you can do now to prepare for filing your taxes. In order to file, your accountant will need to review your financial records. Ensuring that your paperwork is organized and complete will make the process easier for you and your accountant.
The more information you have handy, the better. This includes copies of previous year’s tax returns, along with bank statements, sales records and relevant reports.
If you have employees, it is vital to provide them with the appropriate tax paperwork. It’s also a good idea to review your payroll records with your accountant to confirm that all applicable taxes have been paid throughout the year. Failure to pay the taxes associated with employees can lead to stiff penalties.
Being a small business owner does have some financial benefits. Deductions are designed to help small business owners achieve cost control. Your accountant can review your options with you and help you to determine what you can and should deduct.
Of course, tax laws do change frequently, so it’s important to work with a financial professional who is experienced and knowledgeable about small business tax codes. Don’t let the anxieties of tax time get the best of you. Conquer your fear by preparing early.
Don’t wait to schedule a visit with your accountant. The tax specialists at Lauzen accounting can help you better plan for tax time and more efficiently manage your finances. Contact us today for a free consultation.