Here are a few ideas to maximize your business taxes as a small business owner.
Do you want your tax filing process to be less stressful yearly? If so, consider keeping up with tax records a year-round event rather than a single-day event. As a small business owner, there are many methods to prepare for tax season each year. Here are a few ideas to maximize your business taxes as a small business owner.
Hire the Right CPA or Accountant
The right certified public accountant (CPA) will prepare more than financial statements or help you file taxes. They will also work with you during the year to track income and spending, making sure you don’t have a cash flow problem. In addition, a qualified accountant will help you monitor your gross and net profits. So, working with an accountant from the first day you open your business instead of in March or April for tax season to maximize your business taxes is ideal.
When you hire a tax professional such as Malden Solutions to help you manage payroll, it makes a significant difference. Malden Solutions is reputable and can help you maximize your payroll process through self-service or fully-administered payroll options. We guarantee that everything will stay intact by following up with you to ensure you file taxes with the appropriate state agencies.
Keep and Claim All Accurate Records of Income & Expenses
It would be helpful to invest in simple, affordable, and user-friendly accounting software to help you keep track of your income and expenses. In addition, keeping thorough and accurate records throughout the year ensures an accurate tax record. Otherwise, you could end up leaving deductions or putting yourself at risk for a tax audit. Moreover, the IRS receives a copy of 1099-MISC forms, matching the income you reported against what they know you received. So, you want to ensure the income you report to the IRS is the same income included in the 1099s you received.
Separate Business and Personal Expenses
The IRS will view your personal accounts if you comingle personal and business expenses. Even if you report business expenses correctly, having a separate bank account with a credit card for your business is always ideal. Also, business accounts are used for business expenses.
Determine Your Business Classification
Determine if you want to classify your company as a C or S Corporation, Sole Proprietor, or Single Member LLC. These classifications will have various effects on your taxes. If you don’t classify your company correctly, it can result in you overpaying taxes. An accountant or attorney may help you figure out which is best.
Find the Right Health Insurance Solutions for Your Needs
Malden Solutions has a wealth of expertise in providing employer insurance solutions, HR solutions, and individual insurance solutions to businesses both big and small. Our team of seasoned professionals can help you navigate the rapidly-changing world of insurance with ease. We partner with businesses and individuals throughout the country to provide our dedicated services for employee benefits but also work within our surrounding communities in Maryland, Northern Virginia, and Washington, D.C. Contact us today to learn more about how we can provide effective, dynamic solutions for your business. Stay connected with us on Twitter, Facebook, and Linkedin.