You aren't alone if you don't look forward to filing taxes, but tax season doesn't have to be a nightmare. Advance planning and solid organization can help your business navigate successfully and smoothly through tax season.
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by Naomi Levenspil
A CPA by trade, but a writer at heart, Naomi Levenspil jumps at the chance to exercise the right side of her brain. W...
Updated on: April 13, 2023 · 3 min read
When it comes to your business taxes, the old saying rings true: An ounce of prevention is worth a pound of cure. Business tax preparation is indeed complex, but if you follow best accounting practices throughout the year, filing your taxes should be quite manageable.
Nobody wants to think about taxes outside of tax season, but planning for taxes should not be an annual event occurring only before your tax filing deadline. Making tax planning an ongoing activity in the background of your primary business will minimize stress and keep your tax liability as low as possible when tax season does roll around.
Here are some tips to ensure smooth sailing as you navigate the process.
Hiring an accountant can prove essential to the financial health of your business. Although most people associate an accountant's services with filing taxes, working with a qualified accountant throughout the year offers many benefits for your business, especially, but not only, around tax season.
When it comes to filing taxes, your accountant has the best understanding of deductions and credits that your business is eligible for, translating into the greatest possible savings for your business.
In addition to the most obvious function of filing your taxes, an accountant will advise your business throughout the year, significantly improving profitability. Here are some areas where a professional's knowledge and insight will make a difference:
If you form your business with LegalZoom, you'll have access to their tax services.
Maintaining organized and current records is paramount if you want your tax filing to be a breeze. Although staying on top of your record-keeping may seem like a tedious chore at times, you'll be thankful when tax season rolls around.
Accurate records are essential all the time since they provide a constant snapshot of your company's financial health, pinpointing both areas that are profitable and those that need improvement.
When it is time to file your taxes, your accurate record keeping will prove useful yet again, saving you both time and money. Well-maintained records will help you avoid a mad scramble before deadlines, while simultaneously enabling your business to claim all of the deductions it is eligible for. Furthermore, having organized records readily available will ensure that you pay the correct amount in taxes owed on time, thus avoiding any under/overpayments, penalties, or interest that might arise due to sub-standard bookkeeping.
Follow these steps before tax season to ensure that you have a full and accurate set of records available for use when filing your taxes.
Taxes are inevitable, but careful planning with an eye to the future will certainly minimize unnecessary stress and expense.
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