We love tax season – but you probably don’t
Many small-business owners don’t start thinking about filing tax returns until the final days before they are due, while others start early to get everything filed and out of the way. There’s no right or wrong approach, although we recommend that you start as early as possible.
Whether you’ve already filed, just started organizing documents, or haven’t even thought about taxes yet, our team wants to help reduce tax-time stress and ensure that your returns are accurate.
We prepare tax returns for hundreds of small businesses like yours, and we definitely see a mistake now and then. To help you learn from others, here are five tax mistakes we frequently see:
- Inaccurate records: Accurate and updated financial records and reporting. While they give you critical insight into your business’s financial health, they are also required to prepare tax returns. There are great tools that can help, including our favorite, QuickBooks Online.
- Missed deadlines: Failing to file your tax returns (and pay taxes) can result in major penalties and interest charges. Set reminders ahead of time, and don’t mess with the IRS!
- Ignored deductions: Why pay more taxes than necessary? While it’s easy to deduct common business expenses like office supplies and advertising, owners often overlook deductions for things like startup costs, R&D, and retirement plan contributions.
- Skipped estimated tax payments: If you’re not on the payroll, you still need to pay taxes on your income. That means quarterly estimates and payments. Set aside some money to cover estimated taxes, and keep your receipts. The IRS makes mistakes too.
- Doing it yourself: Tax laws can be complex, and it’s important to seek the advice of a qualified tax professional to ensure that you’re complying with all tax laws and regulations, and taking advantage of all available tax breaks.
Error free = hassle free
By avoiding these common small business tax mistakes, you will save a lot of time, money, and headaches. Make sure that your business complies with all tax laws and regulations. Or better yet, contact our tax experts to review or prepare your business and personal tax returns. Contact us today.