It’s January. That means that winter is here, the Holidays are over, sales on Christmas items are in full force, and tax day is coming…looming…ready to strike!
Well, that isn’t exactly what’s happening, but if you’re a small business owner, that may be what it feels like – like your taxes are your worst enemy and they are licking their lips, preparing to devour you alive. You don’t have to feel like that.
As a small business owner myself, I know how tax time can be one of the most stressful times of the year. Not only am I doing my owner personal taxes, I am dealing with business taxes, and payroll taxes. Over the years I have learned a few things that I thought might be helpful to other stressed out small business owners.
Do Your Homework
The Federal government is a stickler about small businesses completing their taxes without error. That means that you can’t just pick up the forms, fill them out, and hope that you got all the answers right. Before you even get a whiff of tax season, you need to do some research regarding which forms you’re supposed to fill out, what to include, and HOW to fill them out. It’s almost like some kind of foreign language that very few people are fluent in. You can find out the necessary information by visiting www.irs.gov, asking local tax preparation experts, or by simply reading the information provided with your Intuit Quickbooks software.
Be Prepared
Being prepared means that, not only do you have the required tax knowledge, but that you take precautions ahead of time. Setting aside the correct percentage of your earnings, making sure that your employees have filled out and filed the correct tax forms, and keeping accurate and detailed records of all monetary transactions are three of the most important preparations you can do.
Have the Right Software
Tax and bookkeeping software are the best tools in the small business owner’s tool belt. Two of the best business software out there are Intuit Quickbooks (for simple bookkeeping) and Quickbooks Enterprise (for the more involved business software). Inuit makes keeping track of your cash flow, expenditures, vendors, income, taxes, and payroll much easier than when we used log books for everything.
If you want more than just simple bookkeeping (like I do), then you’ll want to spend the extra bit of money on Quickbooks Enterprise. This software (and additional service) allows small business owners to track inventory as well as spending, payroll, and profit. I like the fact that all I have to do is log in and everything I need to run my business is right on my computer screen.
Get Expert Advice
You should never underestimate your need for expert advice. While I have been around the block a few times, I am not a tax expert. I haven’t spent years of my life studying the US tax code, but I have read and reread tax forms, and I have made my share of mistakes. If you really want to get it done right, you can never go wrong with just hiring someone to do it all for you.
