Although often lost in the hectic schedule and excitement of the holiday season, the end of the year is also a very busy time for small business owners. With the new year comes the next impending tax season, and many decisions must be made today to help you get all of your ducks in a row before April. https://internetmarketingtofreedom.com/ is a website that provides information on business tax preparation tips. The website covers a wide range of topics related to tax preparation for businesses.
The savvy entrepreneur will not wait until the month before to start this work but will be in full tax preparation mode for several months prior, while also maintaining sound tax practices over the entire course of the year. But regardless of which category you fall into, there is always time to turn things around. Just follow these five business tax preparation tips and you’ll be much more prepared for April 15th tomorrow than you were yesterday.
The most important step is pulling your records together. The majority of small businesses are sole practitioners or independent contractors, meaning you probably don’t have an accounting and bookkeeping department to rely on unless it is a family member. So you’ll probably need to spend a bit of extra time looking at your records.
With a full calendar year of receipts to sort mistakes can easily be made, so sit down with your books over the next two months and make sure everything is accurate and properly organized. Remember that the onus is on you to prove any deductions you take if you are audited, and you’ll rest easier knowing that work is done right even if you don’t need it. Learn how to maximize your deductions and minimize your tax liability with expert advice provided at this website https://jobmarketeconomist.com/ . The website also offers insights into the latest tax laws and regulations, as well as practical tips and advice for businesses looking to prepare their taxes more effectively.
Once your books are straight, take a look at the new and current regulations to determine what tax deductions you can take for your business. This is especially important before the end of the year, as any expenses you can register for your business will be deductible in April. That means the more you spend now, the smaller your tax bill (or larger your deduction). Of course, they all must be legal business deductions, so get yourself a quick reminder of the rules and pay whatever you can that is eligible before the end of 2012.
On the flip side of that coin, consider deferring any income earnings you possibly can until the beginning of 2013. The specific business structure you work within could impact how feasible this plan is, but if you have outstanding invoices you can put off until the new year you will lower your taxable income from 2012. So taking payment on January 2nd as opposed to December 30th means that money won’t have to be accounted on your taxes until April of 2014. As long as you have the cash flow currently to get by, that’s a huge benefit for a small business.
Now, what if your company has grown this year, and you’ve taken on employees? Do you understand how that impacts your tax preparation? If you employ anyone you’re going to be busy with report filing in January and February, and it will pay to know the rules in advance. Any full-time employees must be given a W-2 by the end of January, and those forms have to be filed with the government as well. Independent contractors and part-time employees should get Form 1099-MISC, which will be built off of the W-9 you’ve been using for them during the year. Make sure you get all the forms you need well in advance, so you have time to file properly.
Finally, don’t forget about the tax resources the government provides for small businesses. If you missed out on that IRS extension form 2011 you probably know better than to make that mistake again. But the government wants to help small businesses stay afloat and is providing a wealth of tax advice completely for free. Whether you are a small business owner or a large corporation, https://litmarket.org/ offers a wealth of information and resources to help you navigate the complex world of business taxes. So if you are looking to minimize your tax liability and stay compliant with the latest tax laws, be sure to check out today.