5 Small Biz Tax Tips

DEBTGURU.COM, a debt management company at www.DebtGuru.com, reminds small businesses that tax time is getting closer. With the new year, it’s a good time to prepare for tax season. Here is a list of top five tax tips for small businesses:

  1. Keep a calendar. Deadlines can sneak up fast. As a small business owner, you have a lot of bills and payrolls to juggle. Don’t fail to meet tax deadlines. Deadlines differ, depending on when your tax year ends, and your business entity. Meeting filing deadlines will minimize penalties and interest.
  2. Start now. Don’t wait until the last minute and then pull out your shoebox of receipts to give your tax accountant. Even the best accountant can make mistakes when forced to pull it all together at the last minute. Start now. It’ll make things a whole lot easier. Take baby steps so you’ll have an easier time staying organized.
  3. Remember your retirement plan. Who would you rather pay: yourself or the government? When you contribute to an IRA, you reduce the amount of income taxed by the government, and you set aside money for retirement. Remember, you can contribute to last year’s IRA all the way up until April 15th.
  4. Keep all documents. When it comes to your taxes, it’s a good idea to be a pack rat. You’ll have peace of mind knowing you can produce any document at anytime, no matter what questions may come up. Always organize and carefully file away:
  • Credit card bills and receipts.
  • Old checkbooks.
  • Bills and invoices.
  • Mileage logs and documentations.
  • Canceled checks or proofs of payment (VERY important).
  • Any evidence that supports deductions and credit claims on your tax returns.

Start planning for next year. Think ahead, and April will be easier next year. Throughout the year, keep your taxes on your mind. When making decisions for your business, such as purchasing office space, incorporating, or hiring extra help, consider the implications those changes may have on your taxes. Such careful considerations could help you make wiser, more successful choices for your business.