As a small business owner, time is very important and something you probably wish was more abundant. There are many tasks a small business owner must address daily to keep business coming through the door.
In addition, there are fiscal responsibilities including filing taxes that go hand in hand with owning a small business. Unless you are an expert on the tax code, tax time can be very stressful and you may miss available deductions.
Tax filing for 2013 has come to a close (unless you have filed an extension) but there are things you can start doing now that will make your 2014 tax filing much easier.
Use these tax preparation tips to save time and help reduce tax filing stress:
1. Receipts and expenses are something every small business owner needs to manage. Where are your receipts stored? Do you have a shoe-box or are they scattered around (some in your office, car and home)? If any of your expenses are missing, they cannot be claimed as deductions.
Take time to input all expenses and receipts into one repository so that no deductions are missed. If you wait until the end of the year, a huge chunk of time will be needed to enter a year’s worth of expenses and receipts (plus trying to find them all).
A better way is to set aside time each week to enter all receipts and expenses for that week. Keeping up with recording receipts and expenses on a regular basis will help ensure you are not missing deductions.
2. Many small business owners mix business and personal funds throughout the year and have to figure out what was purchased for the business and personal use.
Every entrepreneur should open a separate business account and use that account for all business transactions. Use your personal account for all personal expenses. This strategy will save loads of time as you will no longer have to sift through your personal account to figure out what expenses were personal and which expenses were business.
3. Small business owners pay a big percentage of earning towards taxes but often miss tax deductions. There are many tax deductions available for small business owners. If you are unaware of these deductions and do not include them in your return, you cannot reap their benefit.
Other deductions that are often overlooked:
- Continuing education, seminars and online courses
- Internet bills related to running your business
- Business related subscriptions
Hiring a professional will help make filing your taxes less stressful and time consuming plus you are less likely to miss valuable tax deductions.
Start the new tax year off right with good bookkeeping habits and you will save loads of time later. Remember, managing finances is a very important part of running your business. Follow the above tips and your 2014 tax filing will be much easier.
If you need assistance with bookkeeping and accounting services, hire a professional. Shabro Alternative Office Solutions can help your small business with bookkeeping and accounting services, office solutions, payroll services and other business solutions to help expand and grow your business.
Concentrate on what you do best, and let ShaBro help you take care of the rest!