How To Have The Best Tax Season With These Fresh Planning Tips
Whether tax season is breathing down your neck or a million miles away, small business owners know that planning is essential. Don’t let what you owe sneak up on you.
Got questions? We’re glad. Read on to learn more!
First of all, congratulations on being a business owner! Just like your usual day-to-day tasks, tax season will involve some heavy-lifting on your part but will be rewarding in the end.
If you’re a business owner working year round, this is going to be your main source of income, so planning ahead is critical. Check out the small business services we offer. Although you may be running a tight ship financially, you could end up owing a lot of money.
Let’s say your business has taken off this year. Great! It’s still important to know what you owe, as this will affect your previous and future expenses.
We encourage small business owners to do tax planning throughout the year. This way, even if you have a lucrative year, you can still keep an eye on how much you owe. A running tally of how much a business owes can make things easier come tax time.
Save where you can.
There are things you can do that will end up saving you money on taxes, such as:
buying certain equipment you’ve been needing, or contributing to a retirement plan.
If you wait until after the year is over to do things like this, you may miss a tax-saving opportunity.
At minimum, do a tax planning session towards the end of the year. However, a quarterly check-in is great to keep in touch and stay on top of things.
Avoid common pitfalls.
Perhaps you didn’t get good advice from a different accountant, or you waited until the year was over because you had a profitable year, but now you owe more as well. You don’t want your savings for the next year to go towards last year. Whatever your situation, tax planning is a smart solution.
You can take small steps throughout the year to plan your taxes instead of doing them all at once. Below is a timeline of what you can do to plan each month!
When you plan for tax season, you’re giving ‘Future You’ some peace of mind and securing a bright financial future for your business.
Ready to start planning?
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