Stop Tax Procrastination - Discover 10 Tax Tips to Help Small Businesses
By: Ron Finkelstein
Preparing taxes seems complicated but this guide to tax deductions will go a long way in clearing a lot of confusion and putting things in perspective. So if you are among those who procrastinate endlessly to prepare a tax return for your small business, take a look at the guide and it you'll find that it isn't so bad after all... you might just find the energy and drive to get your papers ready in time!
Clear the Calendar: Lack of time is the largest contributor for procrastination. After examining your schedule, select one day dedicated to filing your taxes. If this requires closing the business or filling in with additional employees on that day, just do it.
Use a Bookkeeper: If the work involved in filing your taxes seems overwhelming, you may want to consider hiring a bookkeeper. They can assist you in organizing your specific business concerns, making April taxes seems less daunting.
Take a Trip to the Spa: An overlooked way to increase productivity is to reward yourself when you accomplish a tough task. Rewards to consider might include a day at the spa, a massage, a family outing, or any other reasonable thing that will help motivate you.
Buy a tax program: like Taxcut or TurboTax. These programs make tax preparation easier, and perform all the tasks to make it a less cumbersome process.
Track down a good Accounting Professional: When your business starts to grow, there will be an increase in your income and you will have to face many complications. An accounting professional will be able to help you in overcoming annoying experiences and expensive mistakes. Another advantage of hiring such a specialist is that he can help you with other issues, like providing strategies for managing your cash and giving other practical business and tax tips.
Pay Yourself First: How valuable are YOU to the company? To determine your hourly pay, add your profits for the fiscal year and divide by hours you worked. Next, calculate your tax refund divided by the hours required to complete the return. If your hourly pay matches or is greater than this amount, then you should have plenty of motivation to begin tax return preparations.
Ask for an extension: Most heads of small firms don't have any spare time. However, putting off filing can bog you down in guilt, so that you don't really derive much benefit from putting potential filing time into other company business. Consider asking the IRS for an extension.
Take a Tax Preparation Class: One of the main reasons people delay is because they are uncertain about the requirements. A one-day course in tax preparation for small businesses will help you feel less inhibited and more confident. The IRS itself and various partner organizations offer free online workshops to fit this need. Topics covered include revenue, expenses, filing electronically, employment taxes, keeping records, and various other topics of interest.
Time for a CFO?: As the company grows, so do its financial matters. There comes a time when a staff accountant may no longer be enough for the company. The company's management team may be spending a great deal of time making financial decisions, taking away from their other duties. Or the company, in its quest for additional growth, may desire to offer public stock or raise additional capital. At this point you may want to consider hiring a CFO.
Slow at First: Think in terms of baby steps. Think back to the start-up of the company. If you had known every task necessary to begin the business, you probably wouldn't have considered starting it. So, think small steps. Start with an easy task like organizing files and then go on in small steps.
People never have fun when they have to sit down to file taxes. When you put this tax off, however, you end up with more stress than you would have completing your tax return. Get rid of all of that extra stress. Don't procrastinate any longer. Get rid of all the stress before April so that you can relax.
Ron Finkelstein is NOT a Tax Attorney or an accountant. He is merely a small business owner who has learned a whole lot about The Most Overlooked Tax Deductions, how to pick a tax lawyer, and How to save big when filing business taxes.
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