There are many ways you can prepare your small business for tax season each year. Here are a few tax filing tips to make the process easier.
Do you want tax filing to be less of a headache each year? If so, consider keeping up with tax records a year-round event versus a single-day event. As a small business owner, there are many ways you can prepare for tax season each year. Here are a few ideas to make tax filing less of a headache and tax filing tips that every small business owner should consider.
Hire the Right Accountant or CPA
The right or certified public accountant (CPA) will do more than prepare financial statements and help you file taxes. They will work with you throughout the year to track income and spending, ensuring you don’t have a cash flow issue.
A qualified accountant will also help you monitor your gross and net profits. It’s best to work with an accountant from the first day you open your business versus in March or April for tax season.
Claim All Income That You Report to the IRS
The IRS receives a copy of 1099-MISC forms, which match the income you’ve reported against what they know you’ve received. You want to ensure the income you report to the IRS matches the income reported in the 1099s you received.
Keep Accurate Records of Income and Expenses
It’s helpful to invest in simple, user-friendly, and inexpensive accounting software to help you keep track of all your income and expenses. Keeping thorough and accurate records throughout the year ensures an accurate tax record. If not, you could end up leaving deductions on the table or put yourself at risk for a tax audit.
Separate Business and Personal Expenses
The IRS will start looking at your personal accounts if you comingle personal and business expenses. Even if you report business expenses correctly, it’s always best to have a separate bank account and credit card for your business and only use business accounts for business expenses.
Properly Determine Your Business Classification
Decide if you want to classify your company as a C or S Corporation, Single Member LLC, or Sole Proprietor. These classifications will have different effects on your taxes. If you don’t classify your business correctly, it could result in you overpaying taxes. An attorney or accountant can help you figure out which is best.
Manage Your Payroll Properly through Malden Solutions
When you hire a company such as us to help you manage payroll, it makes a difference. We are reputable and can help you optimize your payroll process through self-service or fully-administered payroll options. We guarantee that nothing falls through the crack by following up with you and ensuring that filing taxes directly with the appropriate state agencies.
Partner with Malden Solutions Today
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.