The Washington Post reports that most small business owners spend up to 40 hrs (a full-time work week) preparing all of their required tax information to file to the IRS. If you're like many business owners, then you'd rather spend that time focusing on other aspects of your business, instead of attempting to navigate mandates and changes to tax laws.
Finding a professional who specializes in tax preparation services for small business owners can allow you to escape the anxiety that many other professionals face each year. However, there are still things that you'll need to do to make this time of year a lot easier to deal with:
Keep Your Accounts Payable And Receivable Documents In Order
A huge advantage of filing taxes as an entrepreneur is that you get to take advantage of tax deductions based upon business expenses. The deductions help to offset the accounts receivable money you'll be taxed on. But, you'll only be able to take advantage of the deductibles if you keep your invoices and receipts in immaculate order.
Traditionally, entrepreneurs kept these types of documents in filing cabinets or inside of small containers such as shoe boxes. Nowadays, you can use technology to neatly store your documents and access them from anywhere with an internet connection. Shopify suggests using apps that allow you to store large quantities of documents for a subscription fee. If you'd like to solely keep track of any business expenses you've paid for with a credit card, then there are services that allow you to store receipts and link your business credit cards to your account. If you're looking for a free solution, then you can use online services that allow you to store receipts, business cards, invoices, and other types of documents you'll need to submit for tax purposes.
Ask For An Extension If You're Disorganized
The IRS understands that it might take you a while to get everything organized while you're running a business, especially if you're a one-person operation. This is why you may be granted a six month extension if you file an extension form by April 15th. This will give you more time to consult with your tax preparation professional, and this will allow them to research any obscure tax deductions and returns you might be entitled to, since tax laws are often updated on a yearly basis.
Unless you're operating an accounting business, you've got other things on your mind besides crunching numbers. Leave that to a professional accountant, like those at Bauer & Associates LTD, while you focus on generating revenue for your business.Share