Tax season is always a stressful time of year for Americans across the country. As an entrepreneur myself, I know firsthand how much weight the added complexities of owning your own business can add to our already over-loaded shoulders.
From sales records and Profit and Loss statements to inventory records and receipts for deductions, the sheer number of documents and amount of data involved can seem like the stuff of nightmares. However, with a little bit of organization, planning and expert bookkeeping, tax season can be relatively painless, even for the busiest of small business owners. In this blog post we will discuss three strategies to make your life a whole lot easier!
Utilize a Small Business Tax Calendar
A small business tax calendar can be an entrepreneur’s best friend. Filing your business’s taxes is all about planning and organization and when it comes to preparing for and meeting essential deadlines, nothing can beat the good ol’ fashioned calendar. As quaint as it may seem, it is absolutely vital to keep a thoroughly documented calendar that contains a clear record of both your tax-related appointments (accountants, bookkeepers, attorneys, business partners, etc.), as well as each and every deadline for which you are legally mandated to submit both your own and your business’s detailed financial records. Being diligent about keeping your calendar up-to-date (AND sticking to it!) will not only make your life a lot easier to handle, it can, quite frankly, be a financial life saver.
For your convenience, a detailed list of the numerous obligatory deadlines for submission, as dictated by the The Internal Revenue Service of the United States of America, for the months of March and April, 2019 can be found here:
Keep Your Financial Records Diligently Organized and Up-to-Date
Despite the fact that records from the Internal Revenue Service indicate that nearly a quarter of the US population waits until the last 14 days before the filing deadline to submit their taxes, I assure you, procrastinating on your taxes is NEVER a good idea, especially true for small business owners!
One of the most common “reasons” people cite for their procrastination is that they have trouble locating all the necessary documents and data required to complete the task (in my opinion, this is simply an excuse, not a legitimate reason…thus the quotations). I’m sure you’ve all heard the old anecdote that, “A failure to plan, is a plan to fail”; well, in regards to your small business’s taxes, I can’t stress enough how incredibly true that old piece of practical wisdom really is. As a small business owner, it is incredibly important you are consistently keeping a very thorough and well-organized record of your company’s finances, including (but certainly not limited to):
- Gross receipts from all sales or services rendered
- Records relating to personal use of assets
- Detailed accounting of all income and expenses
- Returns and allowances
- Inventory accounting
- Interest earned from your business’s checking and/or savings accounts (Form 1099-INT)
- Documentation of any deduction you wish to claim
And the list goes on and on and on… The systemic failure to faithfully keep your business’s bookkeeping and accounting records up-to-date and very well-organized leads to nothing but trouble. Not only could you be missing out on deductions and exposing yourself to a higher than necessary tax liability, if you did happen to get audited the resulting consequences of your careless bookkeeping could potentially prove to be absolutely catastrophic to both your company’s AND your personal finances.
Maximize Your Deductions and Minimize Your Tax Liability Using a Bookkeeping Service
Hiring a reputable, local bookkeeping service is absolutely essential to ensuring that your business’s finances are kept meticulously organized and up-to-date. ShaBro Alternative Office Solutions has been providing professional bookkeeping services for Southwest Florida small business owners for over a decade, helping dozens of companies maximize their deductions and minimize their tax liabilities. So, this year, do yourself a favor and avoid putting yourself through the unnecessary stress and anxiety that inevitably accompanies tax season…
Give us a call today and let ShaBro Alternative Office Solutions handle all of your small business’s bookkeeping needs, so that you can focus on what you do best, running your business! (239) 437-3016