If you are a small business owner (SBO), odds are you have more to worry about than the impending tax season. With so many things on your mind, it can be easy to overlook simple, yet important, tax saving strategies. Even if you have a tax professional or CPA on your side, it never hurts to arm yourself with as much information as possible. To help, Clayton, Paulk, and Associates would like to share some last minute small business owner tax tips!
Small Business Owner Tax Advice
With tax deadlines looming right around the corner, now is the time for CEOs, CFOs, and small business owners to get in those last minute tax preparations. With a little help from your accountant and some tax-friendly advice from North Georgia’s favorite CPA firm, we have no doubt you will be all set when the big day – April 15th – rolls around. And if not, you can always give Clayton, Paulk, and Associates a call!
Keep Your Records in Order
Even though the tax season is in full swing, it is never too late to start practicing good record-keeping habits. You would be surprised how beneficial taking a few minutes out of each day to file and maintain your tax documentation and receipts is for end-of-year filings. Not only will it save you a ton of hassle and frustration come tax season, it can potentially save you money as well – reason enough to set aside that extra daily five minutes!
Know Your Tax Deductions and The Rules
One of the most important things for you to do as a small business owner is to know what tax breaks and tax deductions you can – and cannot – take. For business owners, reducing your tax liability is the name of the game, and the more you can write off for your business, the better, with the caveat that they must be legitimate deductible items.
Home office deductions (if you use a room in your home as office space), travel expenses, and even entertainment costs if you are trying to woo a prospective client, are all viable and legitimate tax write-offs.
Double Check Your Taxes
This is a simple step that many tax filers – small business owners and individual filers alike – neglect. This simple oversight can cost you hundred – maybe even thousands – of dollars. If you prepare your own taxes, it can be easy to make a mistake – an errant or misplaced zero can cost you big time. Worse yet, it can raise a red flag to the IRS, who may deem your mistake a reason to issue a tax audit.
Avoid the hassle and the loss of money and double-check your tax paperwork before you file it!
Call in the Tax Pros
At the end of the day, tax law and tax regulations are a living, frequently-changing beast that even the savviest of tax professionals must study and track to stay on top of their game. Running a business and growing your customer base does not allow for much time for relaxation, much less learning the tax code!
The whole point of your business is to make money, and just as you wouldn’t hire an inexperienced worker to run your company, you should never leave your financial matters in the hands of someone that is not well-versed in the world of finance. Because of that, we highly recommend you employee the use of a tax professional, or better yet, a certified public accountant (CPA) to help not only prepare your taxes, but grow and plan your business as well!