Business taxes don’t have to be complex! If you have a clear path in place to get your taxes filed, it will be much easier.
Here are six tips to make filing your business taxes easier.
By having all your records from the year, you can keep track of your expenses and determine what type of taxes you need to file.
Business records to have on hand include:
• bank statements
• credit card receipts
• payroll information.
Knowing which types of tax filings to make will depend on a few different factors. Some people may have personal income from their business, so they’ll have to file Form 1040 with Schedule C. Other people may have income from multiple sources, so they’ll need to file Form 1040 with Schedules A&B.
Common taxes that businesses file include:
• Form 1040 (U.S. Individual Income Tax Return)
• Form 1120 (U.S. Corporation Income Tax Return)
• Schedule C (Profit or Loss From Business)
• Schedule SE (Self-Employment Tax)
• Form 1040-ES (Estimated Taxes).
Many tax professionals are able to assist people in filing their business taxes.
Make sure you find someone who specializes in your type of business or someone who understands the tax laws for your state.
If sales tax applies to your business, you can even get help with sales tax returns.
Find a tax professional who will guide you through the process and answer any questions or concerns
If you need assistance with filing your taxes, there are plenty of online resources that can walk you through it step-by-step.
If you want someone to review your filing before you send it in, there are also online resources where you can upload your file and get it checked over.
As your business expands you may even want to consider hiring an in-house accountant.
Keep track of your receipts for expenses throughout the year so they’re easy to find when it’s time to fill out your taxes
It’s helpful to keep track of all the business payments you made during the year. Keep a folder with all of your receipts and invoices, and save them there. That makes it easy to find what you need when it comes time to fill out your taxes.
If you want to make keeping track of business expenses even easier you can use software that syncs to your business bank accounts.
The best thing you can do for yourself is to file on time!
If you wait until the last minute, it will be harder to file and you could end up forgetting something. It’s important to get your finances in order as early as possible!
Also, keep in mind that you still need to file on time even if you cannot afford to pay your taxes right away.
The good news is that you can file for a payment plan so you don’t have to pay the full amount at once.
Keeping track of all of these things can feel like a lot, but there are plenty of resources available that can make filing business taxes easier. Make sure you’re fully prepared by having your records, knowing which tax types you need to file, taking care of the paperwork throughout the year, finding a tax professional who can help, getting help if you need it, and filing on time.
By following these steps, filing your business taxes will be a breeze!