Tax Preparation Tips for First-Time Business Owners
You’ve heard the saying that the only two sure things in life are death and taxes. Many of us dread tax time, as it can involve considerable time and effort. It can also be stressful and confusing if you don’t know what you’re doing. Things get even trickier if you own a business. When it’s time to report your earnings and expenses from the previous year, you want to make sure you’re accurate and thorough. However, if you’re a new business owner and have never filed business taxes before, there are a few things you should know and prepare for ahead of time. Tax preparation can be a big job, but with a little education, you can be ready for success.
Let’s be honest, no everyone is naturally organized. It’s a skill that some people have to work hard to learn. As a business owner, you surely recognize the importance of being organized, but perhaps you have an assistant who helps you do this. When it comes to taxes, however, it’s vital to have all your records handy and accessible so you can report them on your taxes. Organize your invoices, expenses and everything related to your business that you’ll need to report. This way, you won’t be scrambling at the last second, and you won’t forget or miss anything you should be reporting.
Get it Touch With Your Accountant Early
Tax time comes quickly after the year ends. Before you know it, mid-April is upon you, so if you haven’t contacted your tax preparation specialist well ahead of time, you might be on your own. Filing business taxes is generally more complicated than personal income taxes, so make sure you give your accountant or tax professional plenty of time to review your records. There’s a good chance, too, that your accountant has other clients to help, so don’t assume you can ask for his or her help a few days before taxes are due in be in good shape.
Make Sure Your Employees Have Signed Necessary Forms
As soon as you hire an employee or a contractor, you should have the person sign a W4 or W9 form, respectively. If, for whatever reason, you forget this step on the hire date, you can still take care of it now. But doing this will ensure that all your expenses are accounted for.
Tax preparation will ease the filing process. Follow these basic steps to ensure you minimize the anxiety and headaches of tax time.