Having and running your own business comes with its own perks. You get to make your own rules, hire the people you like, and do everything on your terms. However, having a company of your own also comes with many less-enjoyable things, such as paying taxes.
To make sure you meet the tax deadline on time, you need to stay organized all year round. Doing this can be a bit tough, especially since this is your first time handling the finances of a business. If you do not have much experience in doing your own taxes either, chances are you won’t be able to do it for your business as well. Here is where Atlanta Tax Preparation Services come in handy.
With professional tax preparers, you do not need to worry about wrong paperwork, missing deadlines, and being selected for an audit. However, if you still wish to go solo, here are a few tips to help you.
Tax preparation tips for small business owners
Stay organized all year.
The best way to prevent stress during tax season is to stay organized from the very beginning. Filing taxes is already a painful and tedious experience. On top of that, if you try to gather all data over the weekend or within a few days, it could result in confusion and inaccuracy.
Instead, stay organized all year round. Categorize your income and expenses on a computer or ledger and ensure they are accurate. Then, it is only a matter of printing them out when it is tax season.
Claim all income reported to the IRS.
The IRS gets a copy of the 1099 MISC forms. Therefore, they are aware of your actual income. Make sure you report your real income, that is, the amount that matches with the 1099 MISC form. Not doing so is a major red flag for the IRS and can invite an audit. It is best to stick to your real income rather than attempting to commit tax fraud.
Know the dates.
The IRS provides Atlanta business owners and the self-employed with a specific tax calendar that shows the deadlines of various duties you need to fulfill. These include filing the W2s and W9s, making estimated payments, and filing your tax return. Go through the tax calendar thoroughly to ensure you do not miss any deadlines. Mapping out the entire fiscal year in advance is the best move.
Keep records of revenues and expenses.
You must keep a record of how much money is coming in and going out of your business. Organizing everything weekly or monthly prevents massive pile-ups at the end of the year.