Check out the following tax tips for small business owners to avoid headaches.
Are you a new small business owner who wants a smooth tax filing process every year? As a small business employer, there are numerous ways to prepare for tax season yearly. Check out the following tax tips for small business owners to avoid headaches.
Employ the Right CPA or Accountant
The right or certified public accountant (CPA) will do more than prepare financial statements to help you file taxes. Your tax person will work with you during the year to track income and spending, ensuring you don’t have any cash flow problems. In addition, a qualified accountant will help you review your gross and net profits. Note: It’s ideal to work with an accountant from day one as a small business owner versus in March or April for tax season.
Keep Track of Income and Expenses
It’s helpful to invest in user-friendly and inexpensive accounting software to help you keep track of your income and expenses. This ensures an accurate tax record at the end of the year. Otherwise, you could be at risk of a tax audit or leaving deductions on the table.
For instance, the IRS obtains a copy of 1099-MISC forms, which should match your reported income against what they know you received. You want to ensure the income you report to the IRS matches the income reported in the 1099s you obtained.
Have Separate Business and Personal Bank Accounts
The IRS will review your accounts if you mix personal and business expenses. Even if small business owners report their expenses correctly, keeping personal and business accounts separate is always ideal.
Properly Determine Your Business Classification
As a small business owner, determine if you want to classify your company as a Single Member LLC, C or S Corporation, or Sole Proprietor. These classifications will trigger different effects on your taxes. Otherwise, you might overpay taxes if you don’t classify your business correctly. An accountant or attorney can help you determine which is best.
Receive Payroll Management Services from Malden Solutions
When you employ Malden Solutions for payroll management, it makes a huge difference. We can help small business owners maximize their payroll processes through self-service or fully-administered payroll options. We guarantee that nothing falls through the cracks by following up with you to ensure that you are filing taxes directly with the appropriate state agencies.
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 X, Facebook, and Linkedin