Preparing to pay your taxes is something that business owners should think about no matter how close to April it is. Here are two tips that will make filling out tax forms easy:
Keep your business easy to understand
Bonnie Lee of Taxpertise writes in Fox Business that companies must keep their tax documents organized and easy to understand. This is crucial at the beginning of the tax year when you will have a lot of outdated files relevant to your 2013 return but not relevant to your 2014 return. Make sure to archive everything, and then use a different file cabinet for the new year’s tax information to keep things separate and avoid confusion. Things to keep include your appointment book and financial statements.
Hire a professional
You should make sure to hire a competent CPA to help you file your taxes at the appropriate times. Depending on how your business is structured, there are different laws for filing taxes, and you would benefit enormously from having a professional who knows the rules and can get you the best deductions. Although it will cost money to hire a professional, you will earn a lot of money in tax refunds. Additionally, this will help you avoid paying penalty taxes from not knowing the appropriate laws.
In a separate article for individual taxpayers, Lee recommends meeting with your tax professional once a year to do tax planning. However, if you own a company, and if your tax situation will change, whether from buying new equipment or expanding your business in other ways, you might want to meet more often than this. Your tax accountant will know what to do.
Lee also recommends that you make sure to give your CPA electronic copies of all the files associated with your business that you will need for tax, as these will become necessary in case of an audit.