Tax Prep For Small Businesses Does Not Have To Be "Taxing"
By: Ron Finkelstein
Does the thought of preparing a tax return for your small business make you cringe? Does inspiration fail you while you wait until the last minute? This small business guide to tax deductions can help prevent procrastination until the last minute.
Clear Your Calendar: We see people postpone things because they do not have sufficient time. They do not make a schedule and follow it. It may be a task of filing your tax papers or something else.
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.
A Massage or Other Nice Reward: can be a great motivator for a job well done. Choose something such as a family getaway or a day at the spa to increase your motivation to start on your taxes.
Use Tax Software: Computer software helps automate some of the more routine and tedious aspects of tax preparation. There is a variety of programs available, most of which would have all the forms available that you need to prepare your return.
Locate an Accounting Professional: Use an accountant to help combat the frustration you may feel as your business grows. A growing business has increased revenue which results in more complex accounting practices. Sometimes expensive mistakes are made. A specialist can help you avoid these costly errors. They can also give you tips on managing cash and valuable 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.
Seek an Extension: The majority of small business owners have little free time. Procrastinating on your taxes may result in feeling more pressured and add no overall time for the business. Evaluate the benefit of filing a time extension request with the IRS.
Enroll in a Tax Preparation Course: If you don't know precisely what to do, you may put off filing. You can gain the necessary information and bolster your self-confidence by taking a one-day tax preparation class designed for small business owners. Such classes or workshops, given via the internet, are provided at no charge by the Internal Revenue Service and certain affiliated organizations. They cover such areas as revenues, expenses, e-filing, record keeping, employment taxes, etc.
Is this the time to take on a Chief Financial Officer?: It could be, if your firm needs more than an accountant's expertise to cope with its financial matters. How do you really know if you need someone to fill this position? Consider whether you are always convening the management team whenever there are financial decisions to be made. You certainly could need a CFO, on either a part-time or full-time basis, if you are planning to launch an IPO or if you need to obtain a significant infusion of capital.
Progress Gradually: Think back on when you first created the business. You might never have gone through with this enterprise if you had known then how much you had to do to get underway. Take baby steps. Open with a simple chore like making a useful set of rolodex cards and go on from there.
Nobody really enjoys doing taxes, but it's much more daunting when you put it off rather than simply getting it out of the way. Avoid the guilt, get going, and see how much better you feel when the deadline rolls around.
Check out the Most Overlooked Tax Deductions, how to choose a tax lawyer, and How to save money when filing business taxes.
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