The end of the calendar year is an important time for businesses of all sizes. It is not only the main selling season for retailers with promotional holiday but also when a business needs to begin to organize the financial information for the tax season.
Although the April 15 filing deadline may be months away, your company must think of ways to make the period as easy as possible. We spoke with the business and financial experts on what small business owners should do now to prepare for tax season.
Automate your tax preparation.
Accountants Goodyear AZ is ready to help solve problems in accounting, small business tax preparation, and individual tax prep.
In today’s world, there are countless programs, applications and services available to help make tax time less of a burden. suggested looking into a tool that allows you to automate any or all of the financial records.Report this ad
“Trying to stay on top of tax rules and rates and then … completing and filing their tax returns on time is a confusing task, especially for small businesses that operate in multiple locations and conduct business across the country. The way taxes should be dealt with in modern times this technology is to automate the process. the earlier a business owner move towards automation, the less time they need to work in the tax season, which means more is left to focus on your business time. ”
“Get the tools you need … to get ahead of [hasty end of the year] so you do not play defense,” said Milam. “Identifying what the system needs to be updated, so when it comes time to close the book, the data is in place and it was clean Make sure it is checked and ready Audit -. In any business, you should review the costly disruption of your business expenses.
As any business owner knows, tax season means taking stock of income, expenses and deductions enterprises. To get ahead of this task, the business owner must do this throughout the year, thus ensuring a smooth ride when it comes time to file taxes.
“The biggest part of preparing taxes is what is supposed to do – that is, keeping track of all business expenses throughout the year,” said Steve Gibson, director of online form builder JotForm. “If everything [had] put into your accounting system in a timely manner, then the hardest part is done. If not, you need to set aside time to collect and enter everything correctly.”
Applying a good filing system, whether digital or paper, is the key to making sure you can easily find and organize all your business expenses. Learning that tax law changes will affect you
tax laws are constantly changing, and it is wise to remain vigilant and up-to-date on changes that may affect your business.
“In addition, although not affect the upcoming tax season, there are some changes to the filing deadline for the next tax season, and this will be a big change in thinking and planning for many small businesses,” said Odeh. “Calendar year partnership [those tax years ending on December 31 will be required to submit on March 15, which is one month earlier than they used to.”
If you are not sure about what went wrong this tax law reform could mean for your business, be sure to consult with a financial professional.
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Do you do your own taxes or hire a professional, expert resources we offer some additional tips to get you through the process.
Understanding cuts and requirements. “Many small businesses do not fully understand the reporting requirements for tax returns. Consultation with a tax before the end of the year will help them cleaning things, better utilizes cutting available, and hopefully lower the cost of [them]. For example, many owners may not realize that the tax code only allows a reduction of 50 percent for food and entertainment. However, there is a reduction allowed from 100 percent for certain foods, such as holiday parties, or when an employer provides meals for employees at work, for the convenience of the employer. Knowing how to track this item during the year will ensure the best cutting.
Think about how the plan will affect the future of next year. “Are you going to seek funding next year Talk to your accountant about reporting method you use -? .. Cash basis or accrual basis of this method will impact the P & L [profit and loss] When the lender is a loan guarantee, less profit can have effect on whether or not you are approved.
Saving for tax liabilities-to-day costs. “We have seen many situations where businesses pay fines steep and punishment simply because they do not set aside the money they would need to cover their tax obligations. The problem is that taxes are usually paid on a periodic basis, and in the meantime, business owners need every penny to cover their operating costs. [with] no cash to cover the tax liability, the consequences [are] fines and penalties that would have been recognized with proper planning and focus. our recommendation is to create a separate bank account. As the money comes in, take into account that … and when tax day comes, you have the cash on hand to cover your liabilities.
Know when to outsource. “Many small businesses are successful because of the approach of do-it-yourself to solve their problems. Taxes are sometimes best left to the professionals. With [hiring a professional], you make sure that they are done properly, and free yourself to continue to manage your primary business needs.
Goodyear AZ accountants ready to help you.
about accounting, small business tax preparation, and individual tax prep. People who need a great accountant in Goodyear AZ that they can trust, need to call Richard Steiman of bsfaz.com.