Are you a small business and not a tax expert? That\u2019s okay. Your focus is probably on your business, and not on tax rules and regulations. As a result, tax time can be a time of panic and stress as you scramble to get receipts together in order to meet deadlines and avoid penalties.<\/p>\n
The key to minimizing tax woes is to treat taxes like any other business practice: Think about it as an ongoing process that needs attention throughout the year in order to be successful. When you begin to think this way, preparing for tax time on a continual basis will allow you to focus on what you\u2019re passionate about: Growing your business.<\/p>\n
As a former small business owner, I know first-hand how difficult tax preparation can be.\u00a0What ultimately helped me make tax season more manageable was using technology to help automate my processes and finances, and working with a professional. With that in mind, I\u2019ve listed out eight tips that will help you prepare for tax season all year long.<\/p>\n
1. Get started now:\u00a0<\/strong>After you complete your 2013 taxes, schedule time on your calendar to establish better habits for next year and beyond. You may have promised yourself last year that you\u2019d never again wait until the last minute to file taxes, but just like anything else, life happens and things fall through the cracks. Make the commitment to keep better track while the tax season is fresh in your mind.<\/p>\n 2. Ditch the shoebox:<\/strong> Collecting receipts in a shoebox or other container is highly inefficient and can make year-end even more stressful. Do you even know what\u2019s in there? Can you find it?\u00a0 Start recording everything electronically so you\u2019ll have an archive ready when it\u2019s time to file next year. \u00a0And, since now all your information is stored electronically\u2026<\/p>\n 3. Back up your electronic records:<\/strong> What would happen to your data in the event of a manmade or natural disaster? Backing up your records and files on a routine basis to a remote location, like in the cloud, saves valuable business information. You can back up on-site as well, but it\u2019s important to keep information stored away from the office. The IRS won\u2019t forgive you because your records are missing, so be sure to have a contingency plan, just in case.<\/p>\n 4. Work with an accountant:<\/strong> An accountant can be a trusted advisor throughout the year to help you plan properly for tax season. This partner can also provide sound business advice throughout the year, as many have specific industry expertise. Build a relationship with an accountant who you trust so that you can tap into their expertise all year long. Your bottom line will thank you.<\/p>\n 5. Use online banking:<\/strong> Most banks let you download all of your transactions. Go in every month and mark the transactions that are tax deductible. When next spring rolls around you\u2019ll have a comprehensive list of tax-deductible items ready to go.<\/p>\n 6. Automate the accounting process:<\/strong> \u00a0If you aren\u2019t using an accounting solution, it\u2019s time to consider one.\u00a0For me, software was instrumental in driving efficiency and accuracy all year long. When I operated my business, I used installed desktop software, but now there are many online solutions available. Using online accounting will eliminate the need to invest a large amount of money upfront and you\u2019ll always have access to the latest version of the tool. Your accountant can help you determine the best fit. Bonus points if the solution lets your accountant have access to your real-time data.<\/p>\n 7. File online:<\/strong> It makes good sense to file your taxes online because it\u2019s faster and you\u2019re less likely to make errors. And in many cases, it\u2019s the law. There are certain forms that are required to be filed electronically, which is where your accountant comes in with an understanding of specific tax requirements for small businesses.<\/p>\n 8. Don\u2019t be late:<\/strong> How do you ensure you\u2019re not late for regular meetings or appointments? You likely have them marked in your calendar and you prepare for them in advance. Do the same thing when it comes to filing taxes, otherwise you might face hefty penalties. These can be be avoided with the proper planning.<\/p>\n Working with an accountant and using tools that make the process easier will not only help you handle tax time, but give your small business a competitive edge, and let you get back to doing what you love.<\/p>\n","protected":false},"excerpt":{"rendered":" Are you a small business and not a tax expert? That\u2019s okay. Your focus is probably on your business, and not on tax rules and regulations. As a result, tax time can be a time of panic and stress as you scramble to get receipts together in order to meet deadlines and avoid penalties. The […]<\/p>\n","protected":false},"author":1136,"featured_media":34449,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[43902],"tags":[],"class_list":["post-12020","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-professional-development"],"acf":[],"yoast_head":"\n