TAX TIME FOR SMALL BUSINESSES
1. Organize Your Financial Records
- Income Records: Gather invoices, sales receipts, and other documentation that shows your business income.
- Expense Records: Collect receipts, bills, and statements for deductible business expenses like rent, utilities, travel, and supplies.
- Bank and Credit Card Statements: Ensure all accounts are reconciled.
- Payroll Records: Compile W-2s, 1099s, and payroll tax filings.
2. Review Tax Deadlines
- Know the filing deadlines for your business structure (e.g., March 15 for S-Corps/Partnerships, April 15 for sole proprietors).
- Mark dates for estimated tax payments if applicable.
3. Verify Tax Documents
- Ensure you’ve received all necessary tax documents, such as:
- Form 1099-NEC (non-employee compensation).
- Form 1099-K (third-party payments).
- W-2s for employees.
4. Maximize Deductions
- Review eligible business deductions, such as:
- Office supplies and software.
- Business meals (50% deductible).
- Depreciation of equipment or vehicles.
- Home office deduction (if applicable).
5. Evaluate Tax Credits
Research available tax credits that might apply to your business, like:
- Small Business Health Care Tax Credit.
- R&D Tax Credit.
- Energy efficiency credits.
6. Separate Business and Personal Finances
If you haven’t already, keep personal and business expenses separate. This helps streamline record-keeping and minimizes potential issues in audits.
7. Reconcile Accounts
Use accounting software or work with a bookkeeper to ensure all income, expenses, and transactions are accurate.
If you need any assistance feel free to reach out to us and we will provide resources
