With the Holiday Season creeping up that also means tax season is right around the corner. Taxes can be stressful for anyone, but that definitely rings true for business owners.
A recent study by The National Small Business Association found that one-third of small business owners spend more than 80 hours on federal taxes each year.
But there are some things you can start now to get ready & reduce stress. The earlier you start getting ready & organized, the less you’ll have to worry about when you have to file.
1. Be Aware of the Deadlines
Knowing when your deadlines to file are will keep you organized throughout the year and therefore reducing stress when the deadlines actually approach.
To stay on top of things, check with the IRS Calendar & write them all in your planner for the year.
2. Start Collecting Your Records
If you are like most business owners, you are great at keeping your files, receipts & expenses tucked away in file folders, but they might not have made it to your spreadsheets.
Do that now, not on April 1st.
Start collecting all your records and documenting them accordingly. Organizing into categories such as marketing, payroll, transportation.
Remember odd items too, like a home office, monthly phone bills etc.
3. Update Your Employee & Contractor Information
If you work with independent contractors at all make sure you submit a 1099 form for them. Contact them now to make sure you have the most up to date information & save yourself the headache later.
And do the same for all your employees & previous employees. You’ll need to distribute your W2s by January 31st.
4. Maximize Your Deductions
The end of the year is a good time to purchase any office equipment, add year end bonuses or throw a client/ employee appreciation party.
Double check the qualifications for your business on these items, but some of these may count as write offs and help in the long run with your taxes.
5. Get Ahead for Next Year
Want to avoid some of this stress next year & get ahead of things now? Look at ways you can stay more organized throughout the year.
Also, look at areas where you could use some help to stay on top of your business. Good areas include customer service & billing. To see how Ponderosa can help, contact us now.