The tax preparation season may be a stressful time for small business owners. Yet, it needn’t be. Filing small business taxes can be a productive and even pleasant process if it is approached in the right way.
Why it is Important to File Your Small Business Taxes Correctly
It is important to file your small business taxes correctly to receive a tax refund if one is earned. Probably more important, accurate reporting can reduce a tax bill, avoid penalties, and avoid collections. Accurate tax preparation and filing should be a priority every year.
Helpful Tips for Preparing Your Small Business Taxes
These helpful tips for preparing your small business taxes will get this important process accomplished to achieve the best results possible:
Understand and commit-to all the appropriate deadlines. Then, plan to do all the preparation work so that the efforts are not rushed.
Get all the tax forms that you will need. Know that the deadlines and forms are dependent on the specific business entity that you have used to structure your business.
Collect all business records regarding business income.
Assemble all documentation for business expenses. These include expenses for insurance, overhead costs, supplies, professional fees, and utilities.
Keep careful records of cash in and out.
Send out the required information forms including 1099s and W-2 forms. Collect the forms that you will receive from other parties including interest on loans, rent from rental properties, and fees for services provided by third-party professionals.
File taxes on time but get an extension if one is needed.
Review your learning from this year and prepare for next year’s tax season based on this learning.
Seek Expert Financial Assistance
Contact the experts at Progressive Capital Funding to achieve your financial goals. Progressive Capital Funding can help your business achieve success and grow to meet your goals by providing a variety of flexible commercial finance options. We offer options for both small and large companies including SBA loans and unsecured lines of credit. Trust us to help you meet your needs.