Tax season can be stressful for every small business owner. For the business owners who handles his or her own filings, it can be particularly burdensome. Here are some tips that can ease the pain:
- New Business - If it is a new business, owners can write off all expenses that took place before the business officially opened for operation. The IRS defines ‘startup costs’ as deductible capital expenses that are used to pay for expenses that can include investigating the creation or acquisition of an active business. They can also include the costs related to examining a new market, analyzing production, and costs visiting prospective sites. Be sure to check with your tax advisor if you have questions.
- Small Expenses - Even small purchases relatable to the business such as educational classes, cash purchases, and subscriptions can add up, ending up in high costs. Make sure these purchases are all tracked and noted and ask your tax advisor about which are deductible.
- Compliance - Stay on top of your other tax obligations including property, sales tax and employment taxes. In addition, keep your personal expenses separate from your business expenses. The most difficult tax compliance takes place in the payroll sector so make sure all are done cautiously and on time!
Meticulous reporting and documenting will help make tax season a simple, seamless process. Understand which forms to fill out and be sure to submit on time!
I would like to thank Paul Chang for his help on preparing this article with me. Paul is a Marketing Intern at Consultants 2 Go and student at New York University. Don’t forget, you can email me at Peggy@Consultants2Go.com with any questions you might have and I’ll be glad to answer them. You can also follow my business and me on Twitter @peggymchale and @consultants2go.